ADR

ADR (Average Daily Rate) is the average rental revenue earned per occupied room in a given time period.

Formula

ADR = Total Room Revenue / Number of Rooms Sold

Context

ADR is one of the three fundamental hotel KPIs alongside occupancy rate and RevPAR. A high ADR indicates strong pricing power, but must be considered alongside occupancy: a hotel can raise ADR by turning away price-sensitive guests and end up with lower RevPAR. PMS reporting and revenue management tools track ADR by segment, channel and rate plan.