ADR (Average Daily Rate) Calculator
To determine the Average Daily Rate (ADR), divide the total room revenue by the number of rooms sold.
This calculator helps you find the average revenue earned per room in a hotel. ADR is a key metric in the hospitality industry used to track pricing strategies, profitability, and overall hotel performance.
Whether you’re a hotel owner, manager, or investor, knowing the average daily rate helps in setting room prices and analyzing revenue trends.
Formula:
The formula for Average Daily Rate (ADR) is:
| Symbol | Meaning |
|---|---|
| ADR | Average Daily Rate ($) |
| R | Total Room Revenue ($) |
| RS | Rooms Sold (excluding complimentary rooms) |
What is ADR (Average Daily Rate)?
ADR is a performance metric used in the hotel industry to measure the average income per occupied room. It helps hotels evaluate pricing strategies, maximize revenue, and compare rates with competitors.
A higher ADR indicates that a hotel is earning more revenue per room, while a lower ADR suggests discounted rates or lower demand. This metric is essential for revenue management and long-term business planning.
Final Words:
In summary, ADR helps hotels track performance and adjust pricing strategies. This calculator makes it quick and effortless to calculate daily room revenue.
FAQs
1. How to calculate ADR (Average Daily Rate)?
Divide the total room revenue by the number of rooms sold using the formula: ADR = R ÷ RS.
2. What is the formula for daily average rate?
ADR is calculated using the total revenue generated from paid rooms only (complimentary stays are excluded).
3. How do you calculate ADR in hotels?
Hotels use ADR to determine how much revenue is earned per occupied room and adjust pricing accordingly.