ADR - Average Daily Rate

Search for glossary terms (regular expression allowed)
Begin with Contains Exact termSounds like
Term Definition
ADR - Average Daily Rate

What is the meaning / definition of ADR in the hospitality industry?

ADR stands for: Average Daily Rate

It is a KPI to calculate the average price or rate for each hotel room sold for a specific day.

It is one of the most common financial indicators to measure how successful the performance of the hotel is against other hotels that have similar characteristics such as size, clientele and location and/or its own previous figures.

How do you calculate ADR?

  • ADR Formula: ADR = Room Revenue / Rooms Sold

Calculation:

  • 100.000 € revenue / 500 rooms = 200,00 € ADR

House use and complimentary rooms are excluded from the denominators. 'House Use' rooms or those occupied by hotel employees or management are excluded as they are not available for sale and not generating income. Complementary rooms are excluded since they don't have a concrete value to calculate sale.

See Also:

Contact us

CALL US.
 NL +31 208 084 756
 UK +44 203 608 0381
 BE +32 280 86 345
 ES +34 934 614 801
 FR +33 184 884 082
 US +1 202 888 0150
 
WRITE US.
 

Xotels on target

CALL US.

  • NL +31 208 084 756
  • UK +44 203 608 0381
  • BE +32 280 86 345
  • ES +34 934 614 801
  • FR +33 184 884 082
  • US +1 202 888 0150

WRITE US.

  • info@xotels.com
Meet with us at ITB

Sign Up !

blauw logo pijl lang xotel

get the latest tips and trends from our blog

 

Don't miss a thing!
Subscribe to our blog