ADR (Average Daily Rate) is the average revenue earned per sold room per day, calculated as room revenue divided by rooms sold. It measures pricing power but ignores how many rooms remained empty.
ADR answers the question of how much guests paid on average for the rooms that actually sold. It is typically tracked by day, segment and channel, since a strong corporate ADR can hide a weak OTA ADR underneath the blended number.
ADR alone can mislead. A hotel can raise ADR by selling fewer rooms at higher prices while total revenue falls. That is why revenue managers pair it with occupancy and RevPAR, and why chasing ADR records during low demand periods often backfires.
← sesion.org · All categories · Advisors · Blog · Glossary