1. What is ADR in hospitality?
ADR stands for Average Daily Rate. It is a key performance metric that measures the average revenue earned per occupied room per day. It is calculated by dividing total room revenue by the number of rooms sold.
2. How is ADR calculated?
ADR is calculated by dividing total room revenue by the number of rooms sold. For example, $150,000 revenue ÷ 1,000 rooms sold = $150 ADR.
3. What is a good ADR?
A good ADR depends on the market, hotel class, and competition. Compare your ADR to similar properties in your area. ADR should be high enough to cover costs while remaining competitive.
4. What is the difference between ADR and RevPAR?
ADR is revenue per occupied room. RevPAR (Revenue Per Available Room) is revenue per total available room, including empty rooms. RevPAR = ADR × Occupancy Rate.
5. What is the difference between ADR and average room rate?
ADR and average room rate are often used interchangeably. ADR specifically refers to revenue per occupied room. Average room rate can sometimes include promotional rates or discounts.
6. What is the difference between ADR and occupancy rate?
ADR measures revenue per occupied room. Occupancy rate measures the percentage of rooms filled. Both are important for revenue management. ADR × Occupancy = RevPAR.
7. What is the difference between ADR and gross operating profit per available room (GOPPAR)?
ADR is revenue-based. GOPPAR is profit-based (revenue minus expenses). GOPPAR provides a more complete picture of profitability. This calculator focuses on ADR.
8. How can I increase my ADR?
Increase ADR by: raising rates (if demand allows), upselling room upgrades, reducing discounting, and improving the guest experience to justify higher rates.