What is ADR?
Average Daily Rate (ADR) is a key hospitality metric that measures the average rental income earned per paid occupied room over a specific time period. It reflects pricing strategy effectiveness and market positioning.
ADR Formula
ADR = Total Room Revenue ÷ Number of Rooms SoldWhy ADR Matters
Pricing Strategy
Evaluate how effectively you price rooms relative to market demand and competition.
Revenue Optimization
Track pricing trends over time to identify opportunities for rate increases.
Competitive Analysis
Benchmark against your comp set to understand market positioning.
Frequently Asked Questions
How is ADR calculated?
Divide total room revenue by rooms sold. Complimentary rooms are typically excluded.
ADR vs RevPAR?
ADR shows average price per sold room; RevPAR shows revenue per available room, including unsold inventory.
Can ADR be too high?
Yes. If high ADR leads to low occupancy, overall revenue (RevPAR) may suffer. Balance is key.
Maximize Your ADR with Thynk
Leverage intelligent pricing insights to optimize your room rates.
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