What is ADR?
Average Daily Rate (ADR) is the average revenue earned per occupied room in a given time period.
ADR measures the average price guests actually pay per room night, excluding vacant rooms from the calculation. It is a key indicator of pricing strategy effectiveness and is one of the two components used to calculate RevPAR.
How to calculate ADR
ADR = Total Room Revenue / Number of Rooms Sold
Example
A hotel sells 75 rooms and earns $9,000 in room revenue. ADR = $9,000 / 75 = $120.
Why ADR matters
ADR reflects your pricing power. If ADR is rising, your rates are holding or increasing. If it is falling, you may be discounting too aggressively or facing competitive pressure. Track ADR alongside occupancy to understand the full picture.
Related terms
Track ADR automatically with Hospio360
Stop calculating metrics in spreadsheets. Hospio360 gives you real-time reporting for your entire property.
Start free trial