ADR Calculator

The Average Daily Rate (ADR) is a core Key Performance Indicator (KPI) used throughout the hospitality industry to evaluate lodging profitability. Our calculator uses two primary formulas depending on your available data. For historical calculations, use room revenue earned divided by the number of rooms sold: ADR = Rooms Revenue Earned / Num Rooms Sold. For prospective or monthly estimations, divide average monthly revenue by 30 days, then divide that daily figure by the total number of rooms in the property: Estimated ADR = (Average Monthly Revenue / 30) / Num Rooms.

Imagine you manage a 100-room boutique hotel. Over the course of a 30-day month, your property generated a total rooms revenue earned of $135,000, and your front desk successfully sold a total of 1,500 rooms. To find your historical Average Daily Rate, divide the total revenue ($135,000) by the number of rooms sold (1,500). This yields an ADR of $90.00 per night. If you wanted to estimate performance using monthly aggregates instead, you would take the $135,000 monthly revenue, divide it by 30 to get $4,500 daily revenue, and then divide that by your 100 total rooms to estimate a baseline performance metric.

To make the most of your ADR calculations, track this metric alongside your occupancy rate to avoid artificially suppressing demand with overly high prices, or losing potential revenue with rates set too low. Regularly review competitor pricing sets within your market sub-sector to ensure your baseline ADR remains competitive. Finally, remember that ADR only counts occupied rooms; do not factor complimentary rooms or out-of-order maintenance rooms into your rooms sold denominator.