1. What is ADR (Average Daily Rate)?

ADR (Average Daily Rate) is a key performance metric in the hotel industry that measures the average revenue earned per occupied room per day. It provides insight into a hotel's pricing strategy and revenue management effectiveness.

2. How Does the Calculator Work?

The calculator uses the ADR formula:

Where:

• \( Total\ Revenue \) — Total room revenue for a given period (currency)
• \( Rooms\ Sold \) — Total number of rooms sold during the same period (number)

Explanation: ADR calculates the average rate at which rooms are sold, excluding complimentary rooms and rooms used by staff.

3. Importance of ADR Calculation

Details: ADR is crucial for hotel revenue management, helping to optimize pricing strategies, measure performance against competitors, and maximize profitability per available room.

4. Using the Calculator

Tips: Enter total revenue in your local currency and the number of rooms sold. Both values must be positive numbers (revenue > 0, rooms sold ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is a good ADR for hotels?
A: A good ADR varies by location, hotel type, and season. It should be compared against market averages and competitor rates for meaningful analysis.

Q2: How does ADR differ from RevPAR?
A: ADR measures average room rate, while RevPAR (Revenue Per Available Room) considers both rate and occupancy (RevPAR = ADR × Occupancy Rate).

Q3: Should complimentary rooms be included in ADR calculation?
A: No, complimentary rooms and staff rooms should be excluded from the rooms sold count for accurate ADR calculation.

Q4: How often should ADR be calculated?
A: ADR is typically calculated daily, weekly, monthly, and annually to track performance trends and inform pricing decisions.

Q5: What factors affect ADR?
A: Seasonality, demand, competition, room type mix, length of stay, and distribution channels all impact ADR.