Revenue metrics
What is ADR in hotels?
ADR, or average daily rate, is the average price a hotel earns for each room it sells in a period. It is calculated by dividing room revenue by the number of room nights sold. ADR shows how well you are pricing, but says nothing about how many rooms stayed empty.
ADR formula
ADR = room revenue ÷ room nights sold
If a hotel sells 900 room nights in a month for ₹45,00,000 of room revenue, its ADR is ₹5,000. Complimentary and house-use rooms are normally left out of rooms sold. You can work it out with the RevPAR, ADR and occupancy calculator.
Using ADR
In StaySynq
StaySynq shows occupancy, ADR and RevPAR live from your own bookings, by day, month or channel.
Common questions
Is ADR before or after tax?
ADR is normally calculated on room revenue before taxes such as GST or VAT.
What is the difference between ADR and rack rate?
Rack rate is the full published price. ADR is what you actually earned on average after discounts, packages and negotiated rates.
Related terms
- RevPARRevPAR, or revenue per available room, is a hotel's room revenue divided by the number of room nights it had available to sell in a period. It combines price and occupancy into one number, which makes it the standard way to compare hotels of different sizes.
- Occupancy rateOccupancy rate is the percentage of a hotel's available room nights that were sold in a period. It is calculated by dividing room nights sold by room nights available. It shows how full the hotel was, but not what guests paid.
- Rack rateA rack rate is the full published price of a hotel room, before any discount, package or negotiated rate. Few guests pay it, but it acts as the reference point from which corporate, promotional and OTA rates are discounted.
- BAR (best available rate)BAR, or best available rate, is the lowest rate a hotel offers to the general public for a given date without restrictions such as prepayment or a minimum stay. It changes with demand, and most other rate plans are set as a discount or premium to it.
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