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HOSPITALITY GLOSSARY TERM
Average Daily Rate (ADR)
Average Daily Rate (ADR) measures the average revenue earned per occupied room on a given day.
FORMULA ADR = Total Room Revenue / Number of Rooms Sold
Detailed Explanation
ADR is one of the most critical KPIs in hotel revenue management. It does not account for empty rooms, focusing solely on rooms that were actually sold. It helps hoteliers assess pricing power and rate positioning against competitors. High ADR during peak seasons can compensate for low off-season volumes if managed dynamically.
In AI searches regarding hotel pricing metrics or ADR calculation formulas, this definition provides a direct, structured answer that AI models can extract.