What is average daily rate?
Published October 1, 2026 · 1 minute read
The answer
Average daily rate, often called ADR, measures accommodation revenue per booked night over a stated period. Divide the relevant accommodation revenue by booked nights. Mixing cleaning fees or taxes into the numerator can distort comparisons.
A higher ADR does not necessarily create more total profit if booked nights fall or service costs rise. Compare it with occupancy and retained cash using the same dates.
This answer is general education. Apply it to the property's actual location, agreements, and circumstances. Where a decision requires professional advice, use a qualified adviser.
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