The ADR is a common metric in the hospitality industry and is used to assess the financial performance and revenue generation of a hotel.
Page written by Ian Hawkins. Last reviewed on June 26, 2024. Next review due April 6, 2025.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
To calculate the ADR, you need two pieces of information:
Room revenue: This refers to the total revenue generated from renting out hotel rooms over a specific period.
Number of occupied rooms: This represents the total number of rooms occupied during the same period.
The formula to calculate the ADR is as follows:
ADR = Room Revenue / Number of Occupied Rooms
Once you have the room revenue and number of occupied rooms values, simply divide the room revenue by the number of occupied rooms to get the ADR.
Using an ADR calculator can help hoteliers assess the pricing strategy, evaluate revenue performance, and make informed decisions to maximize profitability.
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