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Average Daily Rate (ADR) Calculator

Calculate your property's Average Daily Rate (ADR), a key performance metric that measures the average rental income per occupied room.

/ 01

Benchmark Performance

Measure your hotel's pricing power against competitors and your own history.

/ 02

Optimize Pricing

Make informed decisions about your rate strategy to maximize revenue.

/ 03

Drive Revenue

Understand a key component of your overall revenue management strategy.

The calculator

Run the numbers

ADR Calculator

Time Period

Results

Enter values and click Calculate to see results

The theory

Understanding ADR.

Average Daily Rate (ADR) is a metric used by the hotel industry to indicate the average rental income per occupied room in a given time period. It's one of the most important performance indicators for hotels.

/ Formula

ADR measures only the rooms that were sold, not all available rooms, making it a pure pricing-power metric.

ADR = Room Revenue ÷ Number of Rooms Sold
Questions, answered

Frequently asked questions.

A 'good' ADR is highly relative and depends on your hotel's location, type (budget vs. luxury), season, and competitive set. The best way to judge your ADR is by comparing it to your direct competitors (Comp Set) and your own historical performance.
ADR (Average Daily Rate) only considers the rooms that were sold. RevPAR (Revenue Per Available Room) considers all available rooms, whether they were sold or not. RevPAR gives a more complete picture of performance because it accounts for occupancy.
No, standard ADR calculations should only include the revenue generated from the room rate itself. It should not include taxes, resort fees, or revenue from other departments like F&B or the spa.
Strategies to improve ADR include: implementing dynamic pricing based on demand, upselling guests to premium rooms, offering packages and add-ons, and focusing on attracting higher-value market segments like business travelers or luxury tourists.
Sometimes, yes. During low-demand periods, a strategy of lowering your ADR might be necessary to capture more market share and increase overall occupancy. The goal is to find the optimal balance between ADR and occupancy that results in the highest possible RevPAR (total revenue).
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