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.