Understanding Average Daily Rate (ADR)
Real-world scenario: A typical Average Daily Rate (ADR) case uses room revenue 27000 and rooms sold 180. Enter the same figures below to reproduce the worked path.
What is Average Daily Rate (ADR)?
A pricing KPI for hotels. Pair with occupancy and RevPAR; do not confuse ADR with average guest check (F&B covers).
- Room revenue only (exclude F&B unless policy says otherwise)
- Same period as rooms sold
- Currency matches your PMS
The Formula
How we calculate. ADR = room revenue ÷ rooms sold for the period. See our methodology and accuracy policy.
Worked Example
Common Use Cases
- Rate strategy: ADR vs competitors
- Budget vs actual: ADR variance
- RevPAR bridge: rate × occupancy
Pro Tips
- Exclude packages carefully
- Align complimentary room treatment
- Pair with occupancy %
Limitations: Average Daily Rate (ADR) results are educational hotel and restaurant planning aids—not accounting, tax, or franchise reporting advice. Confirm definitions with your PMS, POS, and brand standards.
FAQ
Same as RevPAR?
No. ADR is revenue ÷ rooms sold. RevPAR is revenue ÷ rooms available (or ADR × occupancy).
What if rooms sold is 0?
ADR is undefined—enter positive rooms sold.
Authoritative References
For hotel and restaurant performance concepts, consult:
- AHLA — lodging industry context
- Hospitality Net — industry explainers
- National Restaurant Association — restaurant operations context