Calculate your hotel's Average Daily Rate by dividing total room revenue by rooms sold. A core hotel revenue management KPI.
Average Daily Rate (ADR) measures the average rental revenue earned per paid occupied room over a specific period. It is one of the three cornerstone metrics in hotel revenue management, alongside occupancy rate and RevPAR. ADR gives you a clean view of pricing power — how much guests are willing to pay on average.
To calculate ADR, simply divide your total room revenue by the number of rooms sold. This calculator handles that math instantly, letting you analyze nightly, weekly, monthly, or annual performance. Tracking ADR over time reveals whether rate strategies are working and how pricing compares to the competitive set.
A rising ADR paired with stable or growing occupancy is the hallmark of effective revenue management. Conversely, a declining ADR may signal over-discounting, increased OTA reliance, or market softening.
Restaurant owners, hotel managers, and event coordinators depend on accurate average daily rate (adr) numbers to maintain profitability while delivering exceptional guest experiences. Return to this tool whenever menu prices, occupancy rates, or staffing levels shift to keep your operations on track.
ADR isolates your pricing performance from volume effects. While occupancy tells you how many rooms you sell, ADR tells you how much you earn per room. Monitoring ADR helps revenue managers evaluate rate strategies, negotiate corporate and group contracts, and measure the impact of promotions or distribution changes. Instant results let you test multiple scenarios so you can align pricing, staffing, and inventory decisions with current demand and cost pressures.
ADR = Total Room Revenue ÷ Rooms Sold
Result: $200.00
$42,000 room revenue ÷ 210 rooms sold = $200.00 ADR. This means the hotel earned an average of $200 per occupied room during the period.
ADR is one leg of the revenue management tripod. Revenue managers constantly balance rate against occupancy to maximize RevPAR. Pushing ADR too high can depress occupancy, while excessive discounting boosts occupancy but erodes profitability.
A blended ADR obscures differences between segments. Break ADR down by transient, corporate negotiated, group, OTA, and wholesale to understand which channels contribute positively and which dilute rate. This segmented view guides distribution and contracting strategy.
Net ADR subtracts distribution costs (OTA commissions, GDS fees, loyalty costs) from revenue before dividing by rooms sold. It provides a truer picture of revenue retained per room and is increasingly used by sophisticated operators and asset managers.
It depends entirely on your market, property class, and segment. A luxury hotel may target $300+ ADR while a limited-service property might aim for $100-$130. Compare against your STR comp set, not national averages.
Rack rate is the published maximum rate for a room type. ADR is the average rate actually achieved across all sold rooms, including discounted, corporate, group, and promotional rates. ADR is almost always lower than rack rate.
Only the room component of a package should be included. If a package bundles breakfast and parking with the room, allocate the room portion and use that for ADR calculation.
Daily ADR is useful for revenue managers making tactical pricing decisions. Weekly and monthly ADR provide trend data. Annual ADR is used for budgets, investor reporting, and asset valuation.
Strong demand, limited supply, effective yield management, direct booking growth, reduced OTA dependency, and premium ancillary packages all contribute to higher ADR. Revenue managers balance rate and occupancy to maximize RevPAR.
Yes. If revenue grows because you sold many more rooms at lower rates, ADR can drop. This is why ADR alone isn't sufficient — you must also monitor occupancy and RevPAR to gauge overall health.