Average Daily Rate (ADR) is a common metric used to measure the performance of a hotel. It is the calculation of the average price or rate of a hotel room charged for a given period.
ADR = Revenue ÷ sold rooms
For example, if your revenue was $100,000 and you sold 500 rooms, your ADR would be $200
$100,000 (revenue) ÷ 500 (rooms) = $200 (ADR)
ADR is often considered the most common indicator of a hotels success, especially in relation to competitor hotels with similar demographics.