A metric widely used in the hospitality industry to indicate the average realized room rental per day. Average Daily Rate is one of the core indicators – along with other metrics such as occupancy rate and revenue per available room – used to measure the operating performance of a lodging unit such as a hotel or motel.
HOW TO CALCULATE:
ADR = Gross room revenue divided by the number of rooms occupied. How to solve for “number of rooms occupied”? Take the total rooms x the occupancy percentage.