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.
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
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.