Tag Archives: Average Daily Rate

HOW TO CALCULATE ADR

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.