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Revenue Management Glossary

Average Daily Rate (ADR)

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. 

See also: 

Average Rate Index (ARI, ADR Index)


Revenue Per Available Room (RevPar)