How to use this calculator
Enter room revenue
Enter room-only revenue for the reporting period and choose its currency.
Enter sold room nights
Add the total occupied room nights that generated the room revenue.
Compare current and target ADR
Review the calculated ADR and the room-revenue upside at your target average daily rate.
ADR formula for hotels
ADR = room revenue ÷ room nights sold. If a hotel earns $100,800 in room revenue from 840 sold room nights, its ADR is $120.
Use net room revenue consistently. Exclude taxes and non-room revenue, and decide whether commissions and discounts are removed before comparing periods.
How to interpret ADR
ADR shows the average price paid for occupied rooms, but it does not include unsold inventory. Review it alongside occupancy and RevPAR to avoid raising rates at the cost of too much demand.
Segment ADR by room type, booking channel, day of week and season to find where pricing changes have the most useful effect.
Frequently asked questions
What does ADR mean in hotels?
ADR means average daily rate. It is the average room revenue earned for each occupied room night during a selected period.
Does hotel ADR include tax?
ADR is normally calculated from net room revenue before taxes. Use the same accounting basis every period so comparisons remain meaningful.
What is the difference between ADR and RevPAR?
ADR uses sold rooms only. RevPAR divides room revenue by all available rooms, so RevPAR adds occupancy performance to the rate picture.
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