Average Daily Rate - Hotels (ADR)



This is calculated by dividing daily revenue by number of available rooms.

The Average Daily Rate, or ADR, is a hospitality industy metric measuring the average amount paid per room over the total rooms occupied over that period. For example, if a hotel earned $100,000 in a year with 500 rooms occupied, its ADR would be $100,000/500 or $200. ADR excludes rooms used for "house" purposes (those occupied by hotel employees) and usually complimentary rooms, depending on the hotel. The ADR is useful to measure a property's financial performance, as well as to compare the hotel's performance to its competitors.

However, ADR does not provide an adequate snapshot for a hotel's performance and should be used along with Occupancy and Revenue Per Available Room (RevPAR) to make a more accurate judgment on a hotel's performance. For example, a hotel may have a high ADR, but low occupancy rates, meaning that the hotel is not very profitable.

This article describes the lodging industry statistic. For foreign companies listed on U.S. exchanges, see American Depository Receipt. For the transportation industry metric, see Average Daily Rate - Transportation (ADR)

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