Average Daily Rate (ADR) is a key hotel performance metric that measures the average revenue earned per occupied room in a given period.It is calculated by dividing total room revenue by the number of rooms sold, excluding complimentary or out-of-order rooms.
Average Daily Rate (ADR) is a key hotel performance metric that measures the average revenue earned per occupied room in a given period.
It is calculated by dividing total room revenue by the number of rooms sold, excluding complimentary or out-of-order rooms.
ADR helps hoteliers evaluate pricing strategies, monitor market positioning, and assess financial performance. It indicates how effectively a hotel generates revenue from its occupied rooms.
Front office managers and revenue teams use ADR to adjust room rates, forecast revenue, and benchmark against competitors. ADR is often analysed alongside Occupancy Rate and RevPAR (Revenue per Available Room) to provide a complete view of revenue performance.
PMS and RMS systems automatically calculate ADR, enabling managers to make data-driven pricing decisions.
A high ADR does not necessarily translate into higher profit. If occupancy drops significantly, total revenue may decline. The ideal balance depends on the hotel’s market segment and demand patterns.
ADR reflects how much guests pay on average per occupied room, helping hotels evaluate pricing and revenue outcomes.
It guides rate management, revenue forecasts, and performance comparisons with competitors or past periods.
ADR is tracked in the PMS and Revenue Management Systems, often integrated with Channel Managers and reporting dashboards.
By improving room categories, offering premium packages, upselling services, and optimising distribution through high-yield channels.
Typically, ADR excludes taxes, fees, and service charges—it reflects only the base room rate revenue.
ADR measures revenue per occupied room, while RevPAR considers revenue across all available rooms, giving a broader view of total performance.
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