ADR stands for Average Daily Rate, a key metric in the hospitality industry reflecting the average price at which hotel rooms are sold over a given period, usually per day.
To calculate ADR, divide total room revenue by the number of rooms sold. For instance, a hotel with 100 rooms earning $10,000 from 80 occupied rooms would have an ADR of $125 per room.
This metric is crucial for assessing a hotel's pricing efficiency and revenue management and is used alongside occupancy rate and RevPAR to gauge performance.
