ADR (Average Daily Rate)

Average Daily Rate (ADR) is a hotel industry metric that measures the average revenue earned per occupied room over a specific period. It is calculated by dividing total room revenue by the number of rooms occupied during that time. ADR helps hoteliers assess pricing strategies and overall financial performance, indicating how much guests typically pay for a room on average. This metric does not account for other revenue sources like food or events but provides a clear picture of the average room rate and can be used to compare performance across different periods or properties.