🏨 ADR Calculator
Average Daily Rate Calculator for Hotels
Total revenue from room sales for the period
Total number of rooms sold during the period
How to Use This Calculator
Enter Total Room Revenue
Input the total revenue generated from room sales for your selected time period (daily, weekly, monthly, or annually).
Enter Rooms Sold
Input the total number of rooms sold during the same time period. This is the number of room-nights sold, not the number of bookings.
Calculate ADR
Click calculate to get your Average Daily Rate, which represents the average revenue per room per night.
Formula
ADR = Total Room Revenue / Rooms Sold
Example 1: Daily ADR
Total Room Revenue: $5,000
Rooms Sold: 25 rooms
ADR = $5,000 / 25 = $200 per room per night
Example 2: Monthly ADR
Total Room Revenue: $150,000
Rooms Sold: 500 room-nights
ADR = $150,000 / 500 = $300 per room per night
Example 3: Annual ADR
Total Room Revenue: $2,000,000
Rooms Sold: 6,000 room-nights
ADR = $2,000,000 / 6,000 = $333.33 per room per night
About ADR Calculator
The ADR (Average Daily Rate) Calculator is an essential tool for hoteliers, hospitality managers, and property owners in the accommodation industry. ADR is one of the most important key performance indicators (KPIs) in the hotel industry, representing the average revenue earned per occupied room per day. This metric helps hotel operators understand pricing effectiveness, revenue performance, and market positioning.
ADR is calculated by dividing total room revenue by the number of rooms sold during a specific period. Unlike occupancy rate, which measures how many rooms are filled, ADR focuses on how much revenue is generated per room. A high ADR indicates that a hotel is successfully pricing its rooms at premium rates, while a low ADR might suggest pricing strategies need adjustment or the property is competing in a lower market segment.
This calculator simplifies ADR calculation for any time period - daily, weekly, monthly, quarterly, or annually. Hotel managers use ADR alongside other metrics like RevPAR (Revenue per Available Room) and occupancy rate to get a complete picture of hotel performance. Understanding ADR trends helps in pricing strategy, revenue management, competitive analysis, and financial planning for hospitality businesses.
When to Use This Calculator
- Daily Performance Tracking: Monitor ADR on a daily basis to track pricing effectiveness
- Revenue Management: Analyze ADR trends to optimize pricing strategies
- Competitive Analysis: Compare your ADR with competitors and market averages
- Financial Reporting: Calculate ADR for monthly or quarterly financial reports
- Budget Planning: Use historical ADR data to forecast future revenue
- Pricing Strategy: Evaluate the impact of rate changes on ADR performance
Why Use Our Calculator?
- ✅ Quick Calculations: Instantly calculate ADR for any time period
- ✅ Accurate Results: Precise calculations based on industry-standard formulas
- ✅ Easy to Use: Simple interface requiring only two inputs
- ✅ Free Tool: No registration or subscription required
- ✅ Professional Grade: Suitable for hotel managers and revenue analysts
- ✅ Mobile Friendly: Calculate ADR on-the-go from any device
Understanding ADR in Hotel Management
Average Daily Rate is a fundamental metric in revenue management that measures pricing power and revenue generation efficiency. ADR alone doesn't tell the full story - it must be analyzed alongside occupancy rate. A hotel with high ADR but low occupancy might be overpriced, while a hotel with low ADR and high occupancy might be underpriced and leaving money on the table.
The relationship between ADR, occupancy rate, and RevPAR (Revenue per Available Room) is crucial: RevPAR = ADR × Occupancy Rate. This means you can achieve the same RevPAR with different combinations of ADR and occupancy. For example, $100 ADR at 80% occupancy equals $200 ADR at 40% occupancy - both generate $80 RevPAR. The optimal balance depends on market conditions, demand patterns, and business strategy.
Real-World Applications
Revenue Management: A hotel manager notices ADR dropped from $150 to $120 over the past month. By analyzing this alongside occupancy (which increased from 60% to 75%), they calculate that RevPAR actually improved from $90 to $90. However, the lower ADR might indicate pricing pressure or increased competition that needs attention.
Competitive Benchmarking: A boutique hotel calculates its monthly ADR at $180, while the market average is $160. This indicates strong pricing power and market positioning. However, if occupancy is significantly below market average, the hotel might need to adjust rates to improve overall RevPAR.
Seasonal Pricing: A resort calculates ADR of $300 during peak season and $150 during off-season. Understanding these ADR patterns helps in setting dynamic pricing strategies, planning marketing campaigns, and forecasting revenue for different seasons.
Important Considerations
- ADR should be calculated using room revenue only, excluding other revenue sources
- Rooms sold refers to room-nights, not the number of bookings or guests
- Compare ADR across similar time periods (same day of week, same season) for meaningful analysis
- ADR varies by room type, so segment analysis provides deeper insights
- Consider market conditions, events, and demand patterns when analyzing ADR changes
- Use ADR in conjunction with occupancy rate and RevPAR for complete performance analysis
Frequently Asked Questions
What is ADR in the hotel industry?
ADR (Average Daily Rate) is the average revenue earned per occupied room per day. It's calculated by dividing total room revenue by the number of rooms sold. ADR is a key performance indicator that measures pricing effectiveness and revenue generation.
What's the difference between ADR and RevPAR?
ADR measures average revenue per occupied room, while RevPAR (Revenue per Available Room) measures revenue per available room (occupied or not). RevPAR = ADR × Occupancy Rate. RevPAR provides a more complete picture as it accounts for both pricing and occupancy.
What is a good ADR for a hotel?
A "good" ADR varies significantly by location, hotel type, market segment, and season. Luxury hotels might have ADRs of $300+, while budget hotels might be $50-100. Compare your ADR to local competitors and market averages in your segment to determine if it's competitive.
How do I increase my hotel's ADR?
Strategies to increase ADR include: implementing dynamic pricing, upselling room upgrades, targeting higher-value market segments, improving property amenities and services, reducing discounting, using revenue management systems, and enhancing online reputation to justify premium pricing.
Should I focus on ADR or occupancy rate?
Focus on RevPAR, which combines both ADR and occupancy. The optimal balance depends on your strategy. Sometimes increasing ADR (even if occupancy drops slightly) improves RevPAR. Other times, lowering ADR to increase occupancy is better. Analyze which combination maximizes RevPAR for your property.
Does ADR include taxes and fees?
ADR typically includes room revenue before taxes and fees, though practices can vary. Some properties calculate ADR including all charges, while others exclude taxes and resort fees. Be consistent in your calculation method and clarify when comparing ADR with other properties or industry benchmarks.