What is hotel ADR?
ADR stands for average daily rate. It measures average room revenue earned for each room sold during a period.
How do you calculate ADR?
Divide room revenue by the number of rooms sold. For example, $75,000 in room revenue from 300 rooms sold produces an ADR of $250.
Why ADR matters
ADR is one of the core hotel performance metrics. It helps revenue teams evaluate pricing performance, but it should be considered alongside occupancy and RevPAR.