ADR
See Average Daily Rate.
Frequently Asked Questions about ADR (Average Daily Rate)
What does ADR stand for in real estate and hospitality?
ADR stands for Average Daily Rate. It is a key performance metric used in the hospitality industry to measure the average revenue earned per occupied room per day.
How is ADR calculated?
ADR is calculated by dividing the total room revenue by the number of rooms sold (not including vacant rooms).
ADR = Total Room Revenue ÷ Number of Rooms Sold
Why is ADR important for hotel performance analysis?
ADR provides insight into how much revenue a hotel is earning per occupied room. It is used alongside other metrics like occupancy rate and REVPAR to assess profitability and pricing strategy effectiveness.
How does ADR differ from REVPAR?
ADR only considers rooms that are sold, while REVPAR (Revenue Per Available Room) includes all available rooms (both occupied and vacant). REVPAR gives a fuller picture of overall room revenue performance.
Where can I learn more about ADR and related metrics?
You can refer to related content such as the glossary entries for Average Daily Rate and REVPAR, the full model walkthrough of RV@Olympic (S4E9), and case studies like Hotel Costa Azul. These resources provide deeper context and application examples.
Click here to get this CRE Glossary in an eBook (PDF) format.