Explore commonly used personal finance terms.
Average Daily Rate (ADR) is a hospitality industry metric measuring the average revenue earned per occupied room in a hotel or lodging facility, calculated by dividing total room revenue by the number of occupied rooms. ADR helps assess a property’s pricing strategy, occupancy performance, and profitability. Combined with occupancy rate, ADR is used to determine revenue per available room (RevPAR), a key indicator of a hotel’s financial health and pricing effectiveness, guiding management decisions and marketing strategies.
