The average daily rate is the average revenue per occupied room over a period. You get it by dividing room revenue by the number of rooms sold. It measures price, not how full the hotel is.
Example A hotel earning 10,000 euros from 100 room nights has an ADR of 100 euros.
ADR stands for Average Daily Rate, and it measures the average revenue earned per occupied room over a specific period. It focuses on pricing, not occupancy.
How is ADR calculated?
ADR is calculated by dividing total room revenue by the number of rooms sold. For instance, if a hotel earns 15,000 € from 100 sold nights, the ADR is 150 €.
Why is ADR important and how is it different from RevPAR?
ADR helps assess pricing strategy and per-room profitability, while RevPAR combines both price and occupancy. A high ADR does not guarantee strong revenue if occupancy is low.
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