Average Daily Rate

How the average daily rate calculator works

Average daily rate (ADR) measures how much revenue a hotel or vacation rental earns per occupied room per day. This tool supports two modes: standard ADR from total revenue and rooms sold, or an estimated ADR from monthly revenue and total room count.

ADR is one of the core hospitality KPIs alongside occupancy. Pair it with the occupancy rate calculator to understand both pricing power and demand. Revenue per available room (RevPAR) combines ADR and occupancy into a single performance metric.

ADR formulas

The standard ADR formula divides total room revenue by the number of rooms sold:

When you only have monthly totals, estimated ADR divides average daily revenue by total rooms:

Worked example: $2,558,000 revenue, 18,047 rooms sold

A boutique hotel reports $2,558,000 in room revenue over a period with 18,047 room nights sold:

1. Total revenue: $2,558,000
2. Rooms sold: 18,047
3. ADR: $2,558,000 / 18,047 = $141.74 per room

Rising ADR with stable occupancy usually signals stronger pricing. Falling ADR may indicate discounting or a shift toward lower-rate room types.

Frequently asked questions