Glossary

Average Daily Rate (ADR)

Also known as: ADR

A hotel's total room revenue for a period divided by the total number of rooms actually sold during that period, expressing the average price paid per occupied room-night.

ADR is calculated only against rooms sold, not against total available room inventory — the distinction that separates it from RevPAR, which spreads room revenue across all available rooms including unsold ones — so ADR isolates pure rate performance independent of occupancy, making it the metric of choice for judging pricing power, while RevPAR is preferred for judging total revenue-generating efficiency. ADR calculations conventionally exclude complimentary rooms, house-use rooms, and certain package or bundled-rate components that are not properly room revenue, and out-of-order rooms are excluded from the available-room denominator used in occupancy but not from ADR's sold-room denominator — nuances that matter because inconsistent treatment of these categories across hotels or time periods can materially distort ADR comparisons.