Revenue
ADR (Average Daily Rate)
A fundamental indicator representing the average price paid per occupied room in a given period.
What is ADR?
ADR (Average Daily Rate) is one of the most important metrics for measuring the financial performance of an accommodation facility. It indicates how much, on average, guests pay for a night in your property.
How to Calculate It
The formula is simple:
ADR = Total Room Revenue / Number of Rooms Sold
Example: If in a month you earned €3,000 selling 20 nights, your ADR is €150.
Why Is It Important?
- Price Monitoring: It helps you understand if your pricing strategy is working.
- Comparison: Allows you to compare yourself with competitors or with your past performance.
- Strategy: If the ADR drops, you might have lowered prices too much; if it rises but occupancy plummets, you might be too expensive.
Difference Between ADR and RevPAR
While ADR considers only the rooms sold, RevPAR (Revenue Per Available Room) also takes into account empty rooms, offering a more complete view of profitability.