[Clyde Schechter]

rho = 0.57 tells you that 57% of the part of outcome variation that is not explained by your model variables is attributable to differences between hotels, and the remaining 43% of the unexplained variance is attributable to variation within hotels over time.

[Clyde Schechter]

Just to clarify Carlo's response a little bit, rho gives you "the fraction of variance [not explained by the predictors in the model] explained by individual effects (across panels variance)."

Apologies for two posts in a row in rapid succession saying essentially the same thing. When I hit "Post Reply" on #16, my computer hung for several minutes, and when I finally refreshed my browser window it appeared that my post had not been sent, and all that I could see was Carlo's reply in #15. But when then I posted #17 in response to Carlo's #15, my earlier #16 appeared!

[Carlo Lazzaro]

No matter the replies sequence, Clyde is always smarter than me (and I appreciate his skilfulness very much!).

[Clyde Schechter]

Carlo, I doubt I am smarter than you. I think that I may have some advantages in an English language forum being a native speaker, and there are some areas where my knowledge is deeper than yours--but those are complemented by other areas where yours exceeds mine.

[Carlo Lazzaro]

Clyde:
thanks, very flattering!

[Ninate Sum]

Haha :D
Amazing! Thanks so much to both of you!