1. What is Average Daily Rate?

Average Daily Rate (ADR) is a key performance metric in the hospitality industry that measures the average revenue earned per occupied room per day. It helps hotels evaluate their pricing strategy and revenue performance.

2. How Does the Calculator Work?

The calculator uses the ADR formula:

Where:

• \( \text{Total Revenue} \) — Total room revenue for a specific period
• \( \text{Number of Rooms Sold} \) — Total number of rooms sold during the same period

Explanation: ADR provides insight into the average price at which hotel rooms are being sold, excluding other revenue sources like food and beverage.

3. Importance of ADR Calculation

Details: ADR is crucial for revenue management, helping hotels optimize pricing, measure performance against competitors, and maximize profitability. It's one of the three key metrics in hospitality revenue management alongside occupancy rate and RevPAR.

4. Using the Calculator

Tips: Enter total room revenue in your local currency and the number of rooms sold during the period. Both values must be positive numbers (revenue > 0, rooms sold ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is a good ADR for hotels?
A: A good ADR varies by location, hotel type, and season. Luxury hotels typically have higher ADRs than budget hotels. Compare against local competitors and historical performance.

Q2: How does ADR differ from RevPAR?
A: ADR measures average room rate, while RevPAR (Revenue Per Available Room) considers both rate and occupancy: RevPAR = ADR × Occupancy Rate.

Q3: Should taxes and fees be included in ADR calculation?
A: ADR typically includes room rate plus any mandatory fees, but excludes optional services and taxes. Consistency in calculation method is most important.

Q4: How often should ADR be calculated?
A: Most hotels calculate ADR daily, weekly, and monthly to track performance trends and make timely pricing adjustments.

Q5: Can ADR be used for other accommodation types?
A: Yes, ADR is applicable to all accommodation types including resorts, motels, vacation rentals, and hostels, though calculation methods may vary slightly.