Average Daily Rate
Calculate the average daily rate for hotels and vacation rentals to measure revenue performance per occupied room using our free online calculator.
What Is Average Daily Rate?
Average daily rate (ADR) is a key performance metric in the hospitality industry that measures the average revenue earned per occupied room. It is calculated by dividing total room revenue by the number of rooms sold. ADR helps hoteliers, vacation rental owners, and property managers evaluate pricing strategies, revenue performance, and market positioning.
Our ADR calculator supports two calculation modes: standard ADR using total revenue and rooms sold, and estimated ADR using monthly revenue and total room count. Choose the mode that fits your available data and get instant results.
Why ADR Matters
ADR is one of the three pillars of hotel revenue management, alongside occupancy rate and revenue per available room (RevPAR). A higher ADR generally indicates stronger pricing power and better revenue performance. However, ADR should not be viewed in isolation. A hotel with very high ADR but very low occupancy may still underperform. Combining ADR with occupancy rate gives a more complete picture through RevPAR.
Frequently Asked Questions
How do you calculate average daily rate?
The ADR formula is simple: ADR = total room revenue / number of rooms sold. For example, if a hotel earns $2,558,000 in revenue from 18,047 occupied rooms, the ADR is $2,558,000 / 18,047 = $141.74 per room.
What is the difference between ADR and RevPAR?
ADR measures revenue per occupied room, while RevPAR measures revenue per available room (including vacant rooms). RevPAR = ADR x occupancy rate. RevPAR provides a more complete performance picture because it accounts for both pricing and occupancy.
What is a good average daily rate?
A good ADR depends on factors like location, hotel class, market conditions, and seasonality. The best approach is to compare your ADR against comparable properties in your market and track trends over time rather than aiming for a specific number.
How can I increase my hotel's ADR?
Strategies include offering unique room experiences, pricing premium rooms higher, bundling services with local attractions, implementing dynamic pricing based on demand, targeting specific customer segments, and maintaining a strong online presence with positive reviews.
Does ADR include complimentary rooms?
No. ADR should only include rooms that generate revenue. Complimentary rooms, staff rooms, and vacant rooms are excluded from the rooms sold count to ensure the metric accurately reflects revenue-generating performance.
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