Average daily rate

From Wikipedia, the free encyclopedia

Average Daily Rate (commonly referred to as ADR) is a statistical unit that is often used in the lodging industry. The number represents the average rental income per occupied room in a given time period. ADR along with the property's occupancy are the foundations for the property's financial performance. The ADR can calculated by dividing the room revenue by the number of rooms sold.

[edit] External links

• Introduction to Hotel Statistics

ADR is one of the commonly used financial indicators in hotel industry to measure how well a hotel performs compared its competitors and itself (year over year). It is common in hotel industry that ADR should gradually increase year over year bringing in more revenue. However, ADR it self is not enough to measure performance of the hotel. One should combined ADR, Occupancy and RevPar( Revenue per available room) to make a sound judgment on hotel performance. Recently, some hotels have adapted a new concept called BAR, Best available rate in addition to ADR.

[edit] References

Fairmas: Data with a focus on Germany

MKG Worldwide: Hotel data worldwide

PKF Consulting: Data for select US cities