What is average daily rate (ADR)?

Average Daily Rate (ADR) measures how much revenue a property earns per booked night, excluding empty nights. It’s a core metric for understanding pricing strength.

Here's how it's calculated: Total booking revenue ÷ number of booked nights

Example: If a listing earned $15,000 over 75 nights, its ADR is $200.

Why ADR matters

ADR helps you:

  • Compare pricing performance across properties
  • Track seasonal trends or pricing strategy changes
  • Spot underperformers with high occupancy but low daily earnings

Keep in mind: ADR only reflects revenue from booked nights. For a more complete view, combine it with occupancy or RevPAR.