KPISales
Average Daily Rate (ADR)
Average revenue earned per occupied room per night
What is Average Daily Rate (ADR)?
Average daily rate is the average room revenue earned for each occupied room in a hotel. It shows the typical price guests pay.
It is one of the three core hotel measures, alongside occupancy and revenue per available room.
How this KPI is measured
- Function
- Sales
- Sub-function
- Room Revenue
- Industry
- Hospitality & Hotels
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Daily / Monthly
- Formula
- Total room revenue / Number of rooms sold (occupied)
How to calculate it
Divide total room revenue by the number of rooms sold.
For example, if a hotel earned 300,000 from 2,500 occupied room nights, the ADR is 120.
Read with occupancy, since raising price can reduce the number of rooms sold.
Where it is used
Pricing decisions
Judge rate strategy.
Comparing periods
See seasonal patterns.
Benchmarking
Compare with similar hotels.
How to improve it
Tips and common mistakes
- Never read ADR alone. Check occupancy and revenue per available room.
- Exclude complimentary rooms consistently.
- Seasonality is strong.
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