What is ADR?
Average Daily Rate: the average revenue earned per occupied room per day. Calculated as total room revenue divided by the number of rooms sold. One of the three pillars (alongside Occupancy Rate and RevPAR) for understanding revenue performance.
My perspective
In practice
Tracked alongside occupancy to understand pricing effectiveness. A rising ADR with stable occupancy signals strong brand positioning and pricing power. A high ADR with falling occupancy may signal overpricing.