Average Daily Rate (ADR)
Average Daily Rate (ADR) measures the average rental revenue generated for each paid occupied guestroom across a specific calendar period. It isolates pricing strength from unsold room inventory.
Why It Matters for Independent Operators
ADR indicates a property’s baseline pricing power and commercial positioning relative to competitors. However, ADR measures only occupied rooms; high ADR achieved with single-digit occupancy can mask severe total revenue distress.
Practical Scenario & Calculation
[Illustrative Scenario] A 30-room boutique resort in Udaipur generates ₹1,50,000 in room revenue on a Saturday by selling 25 rooms. ADR = ₹1,50,000 / 25 = ₹6,000.
How Operators Can Apply This Concept
Track ADR separately by booking channel and room tier. Resist lowering published ADR during unconstrained demand periods, and use packaged value-adds rather than public rate slashing in low seasons.
Common Misunderstanding to Avoid
Dividing room revenue by total available rooms instead of rooms sold is a common error; that calculates RevPAR rather than ADR.
Hotel ADR Trend & Yield Analyzer
Compare entered monthly ADR, occupancy and room revenue, with day-weighted annual yield and illustrative pricing scenarios.
Hotel Revenue Management
Professional advisory and hands-on commercial execution for your property.