KPIs
ADR (average daily rate)
ADR (average daily rate) is the average price paid per occupied hotel room for a period: room revenue divided by the number of rooms sold.
1 min read · Updated: September 28, 2026
ADR is one of the three core hotel KPIs, alongside occupancy and RevPAR. It shows what the hotel achieves per sold room but says nothing about how many rooms stayed empty.
ADR = room revenue / rooms sold
How it works in practice
Example: a hotel in Leeds sells 50 rooms on a Monday for a total of £5,500, excluding breakfast and extras. ADR = £5,500 / 50 = £110. On a Saturday it sells 70 rooms for £9,800, so ADR rises to £140.
Points to watch:
- only room revenue counts, not food and beverage or spa,
- a high ADR with low occupancy can mean rates are too high,
- compare ADR with the same period last year and the local competitive set.
How technology helps
ADR is calculated in the PMS or revenue management system. hotelspot does not calculate ADR, but it reports ancillary revenue, which together with room revenue makes up TRevPAR.
Frequently asked questions
- How do you calculate ADR?
- Divide room revenue by the number of rooms sold in the same period. For example, £5,500 from 50 rooms gives an ADR of £110.
- Does ADR include VAT?
- Hotels usually report ADR excluding VAT and excluding breakfast or other items packaged into the rate, so figures are comparable.
