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 used 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 for Hotels, by Xotels


  • ADR Formula: ADR = Room Revenue / Rooms Sold


  • 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 also excluded since they don't have a concrete value to add.

See Also:


  • ADR
  • Average Daily Rate

Synonyms: ADR, Average Daily Rate

Amsterdam - Bangkok - Barcelona - Brussels - Dubai - Jakarta - London - Miami - New York - Paris

Xotels Ltd., Zandvoortselaan 10, 2042 XA Zandvoort, The Netherlands
Chambers of Commerce, Haarlem - the Netherlands, Nr: 34 24 13 54

Our Partners: HotelScienz - Veturi Hotels - Vojo-Ventures - Rimedo - Kabano Rentals

Aggregated Rating Score