Average Daily Rate (ADR) Calculator
Calculate the Average Daily Rate (ADR) for a hotel or lodging property by dividing total room revenue by the number of rooms sold.
How to use this tool
- Enter total room revenue and rooms sold in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your average daily rate and the full breakdown beneath it.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
ADR = Room Revenue / Rooms Sold
How it works
The Average Daily Rate (ADR) is computed by dividing the total revenue earned from room sales by the total number of rooms sold in the same period. Complimentary rooms and rooms occupied at no charge are excluded from both the numerator and denominator. ADR is one of the three key performance indicators in hospitality, alongside occupancy rate and RevPAR (Revenue Per Available Room).
Worked example
Hotel with $50,000 Room Revenue
- Total room revenue for the period: $50,000
- Total rooms sold during the period: 400
- Apply the formula: ADR = $50,000 / 400
ADR = $125.00 per room per night
Common mistakes to avoid
- Including complimentary rooms (zero-revenue nights) in the rooms-sold denominator — ADR measures revenue-generating performance; comps should be excluded or tracked separately.
- Confusing ADR with RevPAR — ADR = Revenue / Rooms Sold, while RevPAR = Revenue / Rooms Available. ADR rises when you sell fewer, higher-priced rooms; RevPAR falls if occupancy drops, even with a higher ADR.
- Mixing room types with very different price points without segmenting — blending suites and standard rooms into one ADR figure masks pricing performance; segment-level ADR provides more actionable insight.
Key terms
- Average Daily Rate (ADR)
- The average revenue earned per occupied room per day, calculated as total room revenue divided by rooms sold.
- Rooms Sold
- The total number of rooms that were occupied and generated revenue during the period, excluding complimentary rooms.
- RevPAR
- Revenue Per Available Room — a related metric calculated as ADR multiplied by occupancy rate, reflecting revenue across all available rooms.
- Occupancy Rate
- The percentage of available rooms that were sold during a given period, equal to rooms sold divided by rooms available.
Frequently asked questions
- What is a good ADR for a hotel?
- There is no universal benchmark -- ADR varies enormously by market, star rating, and season. The useful comparison is your property's ADR against your competitive set (comp set) and your own historical ADR for the same period last year.
- How does ADR relate to occupancy and RevPAR?
- RevPAR = ADR x Occupancy rate. A revenue management strategy that maximises ADR at the expense of occupancy may actually lower RevPAR. Balancing both metrics is the core challenge of hotel revenue management.
- Should ancillary revenue (spa, food and beverage) be included in room revenue for ADR?
- No -- ADR is defined as room revenue only divided by rooms sold. Including ancillary revenue distorts the metric and makes it incomparable to industry benchmarks. Track ancillary revenue separately through total revenue per available room (TRevPAR).