ADR (Average Daily Rate) Calculator
ADR: $0.00
Average Daily Rate (ADR) measures the average revenue earned for each occupied room over a specific period. Use our free ADR Calculator to get fast, accurate ADR results so you can price smarter and grow revenue.
What is ADR?
ADR (Average Daily Rate) is a fundamental hotel performance metric that shows the average price guests pay for occupied rooms.
Formula: ADR=Total Room RevenueNumber of Rooms Sold\text{ADR} = \frac{\text{Total Room Revenue}}{\text{Number of Rooms Sold}}ADR=Number of Rooms SoldTotal Room Revenue
ADR focuses only on revenue from rooms (not F&B, spa, etc.) and considers only rooms actually sold making it essential for pricing and yield management.
How to use the ADR Calculator
- Enter Total Room Revenue for the chosen period.
- Enter Number of Rooms Sold (not rooms available).
- Click Calculate your ADR displays instantly.
This helps you quickly evaluate pricing strategies, compare periods, and decide whether to increase rates or drive more occupancy.
Example
If your hotel earned ₹450,000 in room revenue during a month and sold 150 rooms: ADR=450,000150=₹3,000\text{ADR} = \frac{450{,}000}{150} = ₹3{,}000ADR=150450,000=₹3,000
So, your average rate per occupied room is ₹3,000.
Why ADR Matters
- 🎯 Pricing Insight: Shows how well you’re capturing revenue per booking.
- 📈 Performance Benchmark: Compare ADR month-to-month, year-over-year, or versus competitors.
- 🤝 Revenue Strategy: Use alongside Occupancy and RevPAR to decide whether to raise rates or increase volume.
- 📊 Guest Segmentation: Identify which market segments (corporate, leisure, groups) deliver higher ADR.
How to Improve ADR Practical Tips
- Segmented Pricing: Charge different rates for corporate, leisure, and group segments.
- Upselling & Packaging: Offer upgrades, breakfast-inclusive packages, or late checkout fees.
- Dynamic Pricing: Use demand-based pricing (RMS or a smart rate manager).
- Optimize Distribution: Push higher-rate inventory to direct channels and preferred OTAs.
- Enhance Perceived Value: Improve room experience and highlight add-ons to justify higher rates.
- Length-of-Stay Controls & Minimum Stays: Protect high-value dates by setting minimum night stays.
- Promotions with Conditions: Short-term offers that preserve ADR (e.g., non-refundable or prepaid rates).
Related Metrics (track these too)
| Metric | Formula | Why it matters |
|---|---|---|
| Occupancy Rate | Rooms Sold ÷ Rooms Available | How full you are |
| RevPAR | ADR × Occupancy Rate OR Room Revenue ÷ Rooms Available | Revenue performance per available room |
| GOPPAR | Gross Operating Profit ÷ Rooms Available | Profitability, not just revenue |
| TRevPAR | Total Hotel Revenue ÷ Rooms Available | All revenue streams included |
Frequently Asked Questions (FAQs) about ADR Calculator
What does ADR mean in hotels?
ADR (Average Daily Rate) shows the average room revenue earned from each occupied room in a given period. It’s one of the most important KPIs for pricing performance in the hospitality industry.
How is ADR calculated?
ADR is calculated as: ADR=Total Room Revenue Number of Rooms Sold\text{ADR} = \frac{\text{Total Room Revenue}}{\text{Number of Rooms Sold}}ADR=Number of Rooms SoldTotal Room Revenue
For example, if your total room revenue is ₹100,000 and you sold 50 rooms, your ADR is ₹2,000.
What is a good ADR for a hotel?
There’s no fixed number a good ADR depends on your market, location, and property type. Compare your ADR with past performance and competitors to evaluate success.
What’s the difference between ADR and RevPAR?
- ADR measures average income per occupied room.
- RevPAR measures income per available room (including unsold ones).
RevPAR = ADR × Occupancy Rate.
Why is ADR important for hotels?
ADR helps revenue managers monitor pricing efficiency and ensure room rates align with demand. It’s a foundation for revenue forecasting, budgeting, and yield management.
❓ How can I increase my ADR?
- Offer upgrades and value-added packages.
- Use dynamic pricing tools.
- Improve guest experience and reviews.
- Target high-paying segments like corporate and premium travelers.
- Encourage direct bookings via your hotel website.
Does ADR include taxes and other services?
No. ADR typically excludes taxes, service charges, or non-room revenue like food, spa, or parking fees. It focuses only on room revenue.
Can ADR go down even if occupancy increases?
Yes. If you sell more rooms at discounted rates, occupancy rises but ADR can fall. The best approach is balancing both for optimal RevPAR.
What time frame should I use for ADR?
ADR can be calculated daily, weekly, monthly, or yearly, depending on your reporting needs. Most hotels track it monthly for trend analysis.
How can technology help track ADR?
Modern PMS and Revenue Management Systems can automate ADR tracking, compare past trends, and suggest ideal rates based on demand and competition.