Popular hotel lore holds that new properties command higher average daily rate than their older counterparts. To test this theory, STR analysts looked at the percentage difference in ADR between two- to five-year-old hotels and 15- to 20-year-old hotels over a 12-year span.

Over the 12 years studied, younger hotels consistently commanded higher rates than older properties during expansionary years. Luxury and economy class properties experienced the most ADR volatility in relation to age, with high premiums for younger hotels in good years and negative premiums favoring older hotels in recessionary and recovery years. Independent hotel ADR was more affected by age than chain hotel ADR.