ADR (Average Daily Rate)
The average revenue earned per occupied room per night. The headline pricing metric in hotel revenue management.
Average Daily Rate (ADR) is the average revenue a hotel earns from each occupied room on a given night. It is one of the three pillars of hotel performance, alongside Occupancy and RevPAR, and the cleanest signal of pricing power.
ADR ignores empty rooms by design. It only measures what guests actually paid for the rooms they actually slept in, which makes it the right metric to judge rate strategy in isolation from demand.
ADR = Room Revenue ÷ Rooms Sold
A 50-room hotel sells 40 rooms in one night at varying rates totaling €4,800 in room revenue. ADR = €4,800 ÷ 40 = €120.
Note — Always exclude non-room revenue (F&B, spa, parking) and complimentary rooms from the numerator. Group rooms at zero rate skew ADR downward, most operators report a separate "transient ADR" excluding them.
Where this term shows up in daily operations.
Comparing rate strategy across days, weeks or seasons without occupancy noise.
Benchmarking against competitive set (comp set), a higher ADR than competitors at similar occupancy signals stronger pricing power.
Setting BAR (Best Available Rate) and channel-specific overrides. ADR by source channel reveals which OTAs are eroding net rate.
Talking to lenders or owners. ADR + Occupancy + RevPAR is the standard reporting trio.
What people get wrong.
Including complimentary or staff rooms in "rooms sold" pulls ADR down artificially.
Mixing currencies on multi-property reports, always normalise to a single reporting currency.
Optimising ADR in isolation. Pushing rates too high collapses occupancy, and RevPAR (the metric that actually pays the bills) drops with it.
Comparing ADR across very different room mixes, a hotel with a higher share of suites will always report a higher ADR.
HotelBee Advanced Reporting in HotelBee.
HotelBee tracks ADR, RevPAR and occupancy automatically, segmented by room type, channel, market and rate plan, with no spreadsheets to maintain.
What is a good ADR?
There is no universal benchmark. ADR is meaningful only against your own history and your comp set. A 3-star city hotel in Tirana might run a healthy ADR of €70, while a luxury resort on the Albanian Riviera might need €280 to break even. The right question is whether your ADR is moving in the right direction relative to comparable properties.
How is ADR different from RevPAR?
ADR averages across only the occupied rooms. RevPAR averages across every room in the hotel, sold or empty. RevPAR = ADR × Occupancy, which is why a hotel can have a high ADR but a poor RevPAR if occupancy is weak.
Should ADR include taxes?
No. The standard is to report ADR net of taxes (VAT, city tax, tourism levies) so revenue management decisions reflect what you actually keep. Some PMS reports default to gross, verify your settings.