ADR (Average Daily Rate)

Definition

ADR is total room revenue divided by total room nights sold. If your hotel sold 100 room nights for €12,000 of room revenue, ADR is €120.

What it tells you

ADR is the most-cited price metric. It’s an average, which means it hides the distribution — a hotel selling all rooms for €120 has the same ADR as one selling half for €80 and half for €160.

How to track it

Surfaced by default in most PMS systems and BI tools. Track it by channel, by segment, by day-of-week, by period. Aggregate ADR is less useful than segmented ADR.

Where it fits

ADR is one half of RevPAR (the other being occupancy). Primary signal for pricing decisions: rising ADR with stable occupancy = strong demand; falling ADR with stable occupancy = price pressure.