ADR Average Daily Rate Calculator
Calculate Average Daily Rate for hotels and short-term rentals. Analyze room revenue performance and pricing optimization.
How it works
ADR = Total Room Revenue ÷ Number of Rooms Sold. It measures the average price paid per occupied room, excluding taxes and fees.
Example
$15,000 revenue from 100 rooms sold = $150 ADR. Higher ADR indicates better pricing power and revenue management.
FAQ
What's included in room revenue?
Include only room charges, not food, beverage, spa, or other ancillary services. Exclude taxes and fees to get the pure room rate.
How does ADR differ from average room rate?
ADR is based on rooms actually sold, while average room rate might include discounted or promotional rates that weren't sold.
What's a good ADR?
ADR varies by market, property type, and season. Compare to local competitors and track trends over time rather than absolute numbers.
How do I improve ADR?
Focus on revenue management, optimize pricing strategies, reduce reliance on OTAs, enhance property amenities, and target higher-value guests.
Should I prioritize ADR or occupancy?
Balance both using RevPAR (Revenue per Available Room). Sometimes lower ADR with higher occupancy generates more total revenue than high ADR with low occupancy.