Average Daily Rate - Hotels (ADR)

 
TOP CONTRIBUTORS

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)

Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki