ADR (Average Daily Rate)
Updated May 2026
Also called
Average room rate, average rate
Common prompts
- "What is ADR in hotels"
- "How is ADR calculated"
- "ADR vs RevPAR"
- "Hotel ADR meaning"
Definition
ADR — Average Daily Rate — is the standard industry metric measuring the average revenue per occupied room per day at a hotel or hotel group. It is calculated by dividing total room revenue by the number of rooms sold, excluding complimentary rooms and revenue from food, beverage, or ancillary services.
Why it matters
ADR is one of the two foundational hotel-performance metrics (with RevPAR) and is the most-cited number in hotel-industry coverage and investor communications. AI engines reach for ADR whenever a buyer asks about hotel pricing trends, market performance, or comparisons between hotel groups. A hotel communications strategy that doesn't speak ADR fluently cannot operate in the category's trade and financial press.
Used in a sentence
"ADR for luxury resort hotels in the Maldives rose 14% year-over-year through Q1, outpacing the broader luxury segment and reshaping how the category's communications teams framed pricing-power narratives."
Example
A hotel group reporting Q3 earnings highlights ADR growth as evidence of pricing power, while industry press covers ADR trends as the leading indicator of category health. Both feed AI engine answers about "how are hotels performing."
Related terms
RevPAR · OTA · Revenge Travel · Trade Press