1. What is Average Daily Rate (ADR)?

ADR (Average Daily Rate) is a key performance metric in the hospitality industry that measures the average revenue earned per occupied room per day. It helps hotels evaluate their pricing strategy and revenue performance.

2. How Does the Calculator Work?

The calculator uses the ADR formula:

Where:

• \( Total\ Room\ Revenue \) — Sum of all room revenue for a given period
• \( Rooms\ Sold \) — Total number of rooms sold in the same period

Explanation: The formula divides the total revenue generated from rooms by the number of rooms actually sold to determine the average rate per room.

3. Importance of ADR Calculation

Details: ADR is crucial for hotel managers to understand pricing effectiveness, compare performance against competitors, and make strategic decisions about room rates and promotions.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's a good ADR for my hotel?
A: A "good" ADR varies by location, hotel type, and season. Compare with competitors and your historical performance.

Q2: How often should I calculate ADR?
A: Most hotels calculate ADR daily, weekly, and monthly for performance tracking.

Q3: Does ADR include taxes and fees?
A: Standard ADR calculations typically use room revenue before taxes and fees for consistency.

Q4: What's the difference between ADR and RevPAR?
A: ADR measures average rate per sold room, while RevPAR (Revenue Per Available Room) considers occupancy by dividing total revenue by total available rooms.

Q5: How can I improve my ADR?
A: Strategies include upselling, implementing dynamic pricing, offering packages, and targeting higher-value guests.