Skip to content
OverCalculator
  1. Home
  2. Financial
  3. ADR Calculator (Average Daily Rate)
Financial

ADR Calculator (Average Daily Rate)

Calculate hotel Average Daily Rate from rooms revenue and rooms sold, with occupancy and RevPAR context when rooms available are entered.

Published

Average daily rate
ADR
$125.00
Rooms revenue
$50,000.00
Rooms sold
400
Occupancy rate
80%
RevPAR
$100.00

$50,000.00 in room revenue across 400 sold room-nights equals an ADR of $125.00.

Room revenue for the period, excluding taxes and non-room sales.
$
Occupied room-nights sold during the same period.
Optional room-nights available for occupancy and RevPAR context.

Results update as you type.

ADR Calculator (Average Daily Rate)

Average Daily Rate, or ADR, is a lodging metric that answers a pricing question: how much room revenue did the hotel earn for each room-night sold? It is not a measure of total demand, and it is not a measure of profit. It is a rate-quality metric that helps owners, asset managers, revenue managers, and lenders understand whether the rooms that were sold produced stronger or weaker pricing than expected.

This calculator follows the form’s calculation exactly. It divides rooms revenue by rooms sold. If rooms available are greater than zero, it also calculates occupancy as rooms sold divided by rooms available and RevPAR as rooms revenue divided by rooms available. Rooms sold must be greater than zero. Rooms revenue cannot be negative, and rooms available cannot be negative.

Formula

The ADR formula used here is:

ADR=rooms revenuerooms sold\text{ADR} = \frac{\text{rooms revenue}}{\text{rooms sold}}

When rooms available are provided, the related occupancy rate is:

occupancy rate=rooms soldrooms available×100\text{occupancy rate} = \frac{\text{rooms sold}}{\text{rooms available}} \times 100

RevPAR is:

RevPAR=rooms revenuerooms available\text{RevPAR} = \frac{\text{rooms revenue}}{\text{rooms available}}

The calculator displays occupancy only when rooms available are greater than zero. If you leave rooms available at zero, ADR still works, but occupancy and RevPAR are shown as unavailable because the denominator is missing.

Example

Suppose a hotel records $50,000 of rooms revenue over a week and sells 400 room-nights. It had 500 room-nights available during the same week. The calculator first computes ADR:

ADR=$50,000400=$125.00\text{ADR} = \frac{\$50{,}000}{400} = \$125.00

Then it computes occupancy:

occupancy rate=400500×100=80%\text{occupancy rate} = \frac{400}{500} \times 100 = 80\%

Finally, it computes RevPAR:

RevPAR=$50,000500=$100.00\text{RevPAR} = \frac{\$50{,}000}{500} = \$100.00

The result says the hotel achieved $125 for each sold room-night, filled 80% of available inventory, and earned $100 per available room-night. A different hotel could have the same $125 ADR with only 300 rooms sold out of 500 available; that property would show 60% occupancy and $75 RevPAR, which is weaker total room utilization even though the average sold rate is identical.

How ADR is used

Revenue managers use ADR to evaluate pricing strategy, channel mix, discounting, group contracts, and room-type upgrades. If ADR rises because more guests book premium rooms or because the property reduced low-rated wholesale business, the change may signal healthier demand. If ADR rises only because discounts were cut while occupancy collapsed, total revenue may suffer. That is why ADR should be read with the occupancy rate calculator, the net operating income calculator, and the budget calculator. If a renovation is financed to support higher rates, the loan calculator can help test whether incremental room revenue covers debt cost.

Owners often compare ADR with a competitive set. The comparison is strongest when the hotels share location, service level, brand scale, amenities, and room mix. A select-service airport hotel and a luxury resort may both sell rooms, but their rate structures and guest expectations are different. ADR can also be segmented by transient, group, corporate negotiated, online travel agency, direct web, weekday, weekend, event-night, or room type. Segmenting helps reveal whether a headline increase comes from broad pricing power or one temporary source.

Caveats and interpretation

Use room revenue only. Occupancy taxes, sales taxes, restaurant checks, parking fees, spa sales, cancellation penalties, meeting-room rental, and resort fees can all distort ADR if they are included. If your property-management system reports gross revenue and net room revenue separately, use the line that matches your reporting standard. Also make sure rooms sold and revenue cover the same dates. A monthly revenue number divided by one week’s rooms sold will overstate ADR dramatically.

ADR does not show profitability. A high rate can require expensive amenities, loyalty costs, commissions, renovations, labor, or brand fees. It also ignores unsold inventory. A revenue manager might accept a lower ADR if it fills rooms that would otherwise expire with no revenue, especially when guests also spend on parking or food and beverage. Conversely, a hotel might intentionally protect ADR during low-demand periods to preserve brand positioning. The right decision depends on market compression, variable costs, guest mix, and long-term asset strategy.

Watch for mix shifts. If a group block replaces transient guests, ADR may fall even though base occupancy becomes more predictable. If suites sell out while standard rooms remain empty, ADR may rise even though total sellable inventory is underused. The metric is strongest when paired with segmentation notes that explain who bought the rooms and through which channel.

Common mistakes

  • Including non-room revenue or taxes in the numerator.
  • Dividing by available rooms instead of sold rooms; that produces RevPAR, not ADR.
  • Comparing hotels with different service levels, locations, or room mixes without adjustment.
  • Treating a one-night event spike as a sustainable average rate.
  • Ignoring distribution costs when high ADR comes from expensive booking channels.

Displayed results use the currency, time period, percentage, or other units named in the tool and round only for presentation; retain additional precision when carrying a result into another calculation.

Method and source limits

The archived STR Global Hotel Performance Definitions reference, published January 28, 2013, defines ADR as room revenue divided by rooms sold, occupancy as rooms sold divided by rooms available, and RevPAR as room revenue divided by rooms available. Optional room availability must be at least rooms sold. Sources and linked guidance below were accessed July 9, 2026; later revisions are outside this page version.

Sources

Frequently asked questions

What does ADR mean in hotels?
ADR means Average Daily Rate. It measures the average room revenue earned for each sold room-night during a specific period, excluding taxes and non-room revenue such as restaurant, parking, spa, resort fee, or meeting-space sales. It is a pricing metric, not a profit metric.
How is ADR calculated?
ADR is rooms revenue divided by rooms sold. If rooms available are entered, rooms sold divided by rooms available gives occupancy rate, while rooms revenue divided by rooms available gives RevPAR. Revenue, sold rooms, and available rooms must use matching dates.
Should comp rooms be included in rooms sold?
Use the definition from your property-management or reporting system. Many lodging reports exclude complimentary rooms from rooms sold for ADR, while others track them separately. The key is to use the same definition across all periods and competitors, especially when benchmarking.
Why can ADR rise while revenue falls?
ADR only considers rooms that were sold. A hotel can raise rates and improve ADR while selling far fewer rooms, which may reduce total rooms revenue. Review ADR with occupancy and RevPAR before judging pricing success. Empty rooms still expire with no room revenue.

Related calculators

Average Variable Cost CalculatorCalculate average variable cost from total variable costs and output, then compare AVC with selling price, contribution per unit, and total contribution.Break-Even CalculatorCalculate break-even units, revenue, contribution per unit, and contribution margin from fixed costs, price, and variable cost per unit.Customer Lifetime Value (CLTV) CalculatorCalculate revenue-based customer lifetime value from total revenue, purchases, customer count, and total customer lifespan.Cost of Doing Business CalculatorCalculate cost per billable day from total annual operating cost and billable days, with monthly and five-day equivalents for pricing and capacity planning.EBITDA Margin CalculatorCalculate EBITDA margin from revenue and EBITDA, compare the result with an industry benchmark, and interpret operating profitability before financing and tax effects.Gross Margin CalculatorCalculate gross profit, gross margin, COGS ratio, and overhead coverage from revenue, cost of goods sold, and optional operating expenses.

ADR Calculator (Average Daily Rate) updated at