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How to use the ADR calculator
You can calculate ADR for one night, a month or any other reporting period. Room revenue and rooms sold must cover the same dates and follow the same reporting rules.
What is the ADR formula?
Average daily rate divides room revenue by the number of rooms sold. It is a monetary amount, not a percentage, and can be calculated in any currency.
ADR formula
ADR = room revenue ÷ rooms sold Room revenue from guestroom rental only; rooms sold are revenue-generating room nights.
How ADR connects to RevPAR
RevPAR = ADR × occupancy Occupancy brings unsold rooms into the picture, which ADR leaves out.
ADR calculation example
A hotel records €15 000 in room revenue and 125 rooms sold during the same period.
| Figure | Value | Note |
|---|---|---|
| Room revenue | €15 000.00 | Guestroom rental, net of taxes |
| Rooms sold | 125 | Revenue-generating room nights |
| ADR | €120.00 | €15 000.00 ÷ 125 |
Each sold room generated €120 in room revenue on average. Individual bookings may be higher or lower because of room type, length of stay, segment, discount or booking channel.
What does your ADR result mean?
ADR shows the average rate captured on rooms that were sold. Tracked over time, it reveals how pricing and business mix change across weekdays, seasons, room types, channels and segments.
A higher ADR is not automatically better. A rate change can affect demand, occupancy, distribution cost and profit, so read ADR together with the other two core rooms metrics.
| Metric | Formula | What it answers |
|---|---|---|
| ADR | Room revenue ÷ rooms sold | What rate did sold rooms achieve? |
| Occupancy | Room nights sold ÷ available room nights | How much inventory was sold? |
| RevPAR | Room revenue ÷ available room nights | How hard did every available room work? |
What to include in an ADR calculation
Use the definitions applied by your accounting and reporting system, and keep them the same across every period you compare.
| Item | In ADR? | Why |
|---|---|---|
| Guestroom rental revenue | Include | Net of rebates, refunds and taxes |
| Room portion of packages | Include | Allocate only the room component |
| Food, spa, parking | Exclude | Non-room revenue |
| Ordinary complimentary rooms | Exclude | Not revenue-generating rooms sold |
| No-shows | No room sold | Follow one reporting standard consistently |
| Cancellation fees | Usually exclude | Often classed as miscellaneous income |
- The result is arithmetic on the values you enter, not a forecast, benchmark or accounting opinion.
- The calculator does not convert currencies or adjust for taxes, inflation or distribution cost.
- ADR is calculated per room sold, not per guest: a room with two guests counts once.
ADR calculator FAQ
What does ADR mean in hotels?
ADR means average daily rate. It measures the average room revenue earned for each revenue-generating room sold during a specified period.
Is average room rate (ARR) the same as ADR?
In practice, yes. Average room rate (ARR) is calculated the same way: room revenue divided by rooms sold. ADR is the term used by STR and hotel accounting standards, while ARR is more common in the UK and Asia. Some hotels use ARR for a longer period, such as a month, and ADR for a single day; the formula stays the same.
How do you calculate hotel ADR?
Divide room revenue by rooms sold for the same reporting period. If a hotel earns €15 000 in room revenue from 125 rooms sold, its ADR is €120.00.
Is ADR calculated per guest or per room?
ADR is calculated per room sold, not per guest. A room occupied by two guests still counts as one room sold.
Should taxes be included in ADR?
Room revenue is normally reported net of taxes. Follow one documented convention across every period you compare.
Are complimentary rooms included in rooms sold?
Ordinary complimentary rooms are generally excluded. Rooms provided free as part of a promotion or contract may be included under industry reporting guidance.
Does ADR include food, spa or parking revenue?
No. ADR uses room revenue only. Include just the room portion of a package.
What is the difference between ADR and RevPAR?
ADR divides room revenue by rooms sold. RevPAR divides room revenue by available room nights, so it also reflects unsold inventory. RevPAR equals ADR multiplied by occupancy.
What is a good ADR for a hotel?
There is no universal good ADR. Compare your result with your own comparable periods, budget, forecast and a relevant competitive set.
Can I calculate ADR for a month?
Yes. Divide the month’s qualifying room revenue by the rooms sold in that month. Do not take a simple average of daily ADRs.
