average daily rate calculator

What Is Average Daily Rate (ADR)?

Average Daily Rate (ADR) is one of the most important hotel performance metrics. It measures the average rental income earned for each occupied room over a specific period. In simple terms, it tells you the average amount guests are paying for rooms that were actually sold.

Whether you manage a boutique inn, vacation rental portfolio, or large hotel, ADR gives a quick snapshot of pricing performance and helps guide revenue strategy.

ADR Formula

The standard formula is:

ADR = Total Room Revenue ÷ Rooms Sold

Example: If your hotel generated $12,000 in room revenue from 80 sold rooms, your ADR is:

$12,000 ÷ 80 = $150 ADR

That means the average occupied room sold for $150.

How to Use This Average Daily Rate Calculator

• Enter your total room revenue for the period.
• Enter the number of rooms sold in the same period.
• Add the number of days covered by that data.
• Optionally enter rooms available per day to compute occupancy and RevPAR.
• Click Calculate to see your results instantly.

Metrics You’ll See

1) ADR (Average Daily Rate)

This is your primary output. It reflects your average room selling price across occupied rooms only.

2) Average Daily Room Revenue

This shows how much room revenue you generate per day during the selected period.

3) Rooms Sold Per Day

This gives you average demand per day and helps identify weekday vs. weekend pressure points.

4) Occupancy Rate (Optional)

If you provide rooms available, the calculator estimates occupancy:

Occupancy = Rooms Sold ÷ (Rooms Available × Days)

5) RevPAR (Optional)

Revenue per Available Room (RevPAR) combines occupancy and rate into one metric:

RevPAR = Total Room Revenue ÷ (Rooms Available × Days)

Why ADR Matters

ADR is useful for revenue management, budgeting, benchmarking, and pricing decisions. A rising ADR can indicate stronger pricing power, better guest mix, or improved upselling. A falling ADR may suggest discounting pressure, seasonality, or increased competition.

• Compare ADR by day of week
• Track ADR by season
• Analyze ADR by channel (direct, OTA, corporate, group)
• Use ADR trends to optimize promotions and rate fences

Common ADR Mistakes to Avoid

• Mixing time periods: Revenue and rooms sold must cover the exact same dates.
• Including non-room revenue: ADR should only use room revenue, not food, spa, or parking.
• Ignoring segmentation: A single ADR number can hide weak channel performance.
• Using ADR alone: Pair ADR with occupancy and RevPAR for a complete picture.

Practical Example

Suppose your 60-room property reports for a 30-day month:

• Total room revenue: $198,000
• Rooms sold: 1,320
• Days: 30
• Rooms available per day: 60

Results:

• ADR = $198,000 / 1,320 = $150.00
• Occupancy = 1,320 / (60 × 30) = 73.33%
• RevPAR = $198,000 / (60 × 30) = $110.00

Final Thoughts

This average daily rate calculator gives you a fast, reliable way to measure room pricing performance. Use it weekly or monthly, compare against historical data, and pair it with occupancy and RevPAR to make smarter revenue decisions.