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What is ADR (average daily rate) in hospitality and how is it calculated?

ADR, average daily rate, is room revenue divided by the number of rooms sold, for a period. It shows the average price paid per occupied room, and excludes unsold rooms from the calculation.

Formula in words: total room revenue divided by rooms sold.

Example: 21,000 currency units of room revenue from 210 rooms sold gives an ADR of 100.

It matters because it shows pricing strength independent of how full the property is.

Commonly misread:

Use it with occupancy and RevPAR.

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Published by Zansa · Last updated 2026-11-06 · Category: Hospitality