ADR - Average Daily Rate
|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?
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.