HOW TO CALCULATE ADR

Posted by Ted Mannon on Monday, August 3rd, 2015 Category1

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.

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