ADR calculator
Average daily rate
Use this free ADR calculator to determine your hotel’s average daily rate in seconds, then read what the number is actually telling you about pricing power, segment mix and rate strategy.
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Inputs
Your ADR
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ADR = Room Revenue ÷ Rooms Sold
What is ADR in hotels?
ADR (Average Daily Rate) is the most direct measure of pricing power a hotel has. It tells you, on average, what each occupied room actually billed for over a given period, ignoring inventory you didn’t sell.
Hoteliers, revenue managers and investors use ADR alongside RevPAR and Occupancy Rate to read pricing strategy at three resolutions: what you charged, how full you were, and whether the inventory was monetised.
ADR formula
Formula
ADR = Total Room Revenue ÷ Rooms Sold
- Total room revenue
- Revenue from sold rooms only. Exclude F&B, spa, parking and other operating departments.
- Rooms sold
- Total occupied room-nights, excluding complimentary, house-use and out-of-order rooms.
Why ADR matters
A strong ADR is a sign that pricing strategy and demand are in alignment. You’re not just filling rooms, you’re filling them at rates that meet the business plan. Watching ADR over time is the cleanest way to see whether your rate moves are being absorbed by the market or simply ignored.
ADR also benchmarks well: properties of similar category and market profile share enough demand structure that ADR comparisons (your ADR vs comp set average, vs your own ADR same time last year) tell you something real about positioning.
How to read your ADR
ADR alone never tells the full story. The same $180 ADR can mean very different things: a city-centre boutique selling out at $180 is leaving money on the table; a resort holding $180 with 40% occupancy is over-priced for the market it has.
- Pair ADR with occupancy. High ADR + low occupancy = over-restricted or over-priced. Low ADR + high occupancy = leaking rate.
- Pair ADR with channel mix. A drop in ADR is often a shift in mix toward higher-discount channels, not a real price cut.
- Pair ADR with segment. ADR by segment (corporate, leisure, group, OTA) decomposes the headline rate into the levers that actually moved.
Strategies to lift ADR
- Raise prices on dates with strong pickup pace before they sell out at last week’s rate.
- Sell higher room categories more aggressively (room-type-specific upgrade flows at booking).
- Add paid upgrades and upsell offers in confirmation and pre-arrival emails.
- Reduce the share of low-rate channels by tightening allotments on opaque/wholesale during peak.
- Open advance-purchase rates further out and close them as the date approaches.
Common questions about ADR.
There is no universal "good" ADR, it depends entirely on your category, market, segment mix and seasonality. The number that matters is your ADR vs the same period last year, vs your forecast, and vs your competitive set, not vs an industry-wide benchmark.
Calculators that pair well.
RevPAR
RevPAR calculator
Calculate RevPAR (revenue per available room) free, in seconds. Use either Room Revenue / Available Rooms or ADR x Occupancy. Compare year over year.
Open the toolOccupancy
Occupancy rate calculator
Calculate occupancy rate: rooms sold divided by available rooms, expressed as a percentage. The denominator of every hotel revenue metric you track.
Open the toolALOS
ALOS calculator
Calculate ALOS (average length of stay): total room nights divided by total bookings. Drives operations cost per turn and revenue per booking.
Open the tool
Track this metric live, alongside everything else.
Pulse, the live KPI dashboard inside Prostay, calculates this metric on the same data your team works from. No manual exports, no end-of-month surprises.