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Category Business & Trade

Total Room Revenue ($) Net room revenue only. Exclude taxes and ancillary.

Rooms Sold Paid occupied rooms. Exclude comps.

Total Available Rooms Total sellable inventory (rooms × nights). Exclude OOO.

Currency Symbol

Period A

Room Revenue ($)

Rooms Sold

Rooms Available

Period B

Room Revenue ($)

Rooms Sold

Rooms Available

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About

Average Daily Rate (ADR) is the primary revenue performance metric in hotel management. It measures the mean rental income per paid occupied room over a defined period. Miscalculating ADR distorts your revenue strategy: overestimation inflates projections and leads to missed budget targets, while underestimation suppresses rate optimization and leaves money on the table. The formula excludes complimentary rooms, staff rooms, and out-of-order inventory from the denominator. This tool computes ADR alongside RevPAR (Revenue Per Available Room) and occupancy percentage, giving you the three pillars of the USALI (Uniform System of Accounts for the Lodging Industry) rooms-division analysis.

Note: ADR does not account for ancillary revenue (F&B, spa, parking). For total revenue performance, pair this with a TRevPAR analysis. The calculation assumes consistent inventory count across the period. If rooms go offline mid-period, adjust available rooms accordingly. Pro Tip: compare your ADR against the STR (Smith Travel Research) comp set for your market tier before adjusting rack rates.

Formulas

The core metric computed by this tool is the Average Daily Rate:

ADR = Total Room RevenueNumber of Rooms Sold

Occupancy Rate expresses utilization of available inventory:

OccRate = Rooms SoldRooms Available × 100%

Revenue Per Available Room combines rate and occupancy into a single yield metric:

RevPAR = ADR × OccRate

Alternatively:

RevPAR = Total Room RevenueTotal Available Rooms

For multi-period analysis, the tool computes the percentage change between periods:

Δ% = Value_current − Value_previousValue_previous × 100

Where ADR = Average Daily Rate in $. OccRate = Occupancy Rate as a decimal (0 - 1). RevPAR = Revenue Per Available Room in $. Rooms Sold = paid occupied rooms only (excludes comps). Rooms Available = total sellable inventory (excludes out-of-order).

Reference Data

Hotel Segment	Typical ADR Range ($)	Avg Occupancy (%)	Typical RevPAR ($)	Room Count Range	Primary Market
Economy / Budget	50 - 90	55 - 70	28 - 63	40 - 120	Transient / Road Warriors
Midscale	90 - 140	60 - 75	54 - 105	80 - 200	Business / Leisure Mix
Upper Midscale	120 - 180	62 - 78	74 - 140	100 - 300	Corporate / Group
Upscale	160 - 280	65 - 80	104 - 224	150 - 400	Corporate / Convention
Upper Upscale	220 - 400	68 - 82	150 - 328	200 - 600	Business / High-end Leisure
Luxury	350 - 800+	55 - 75	193 - 600	50 - 350	Affluent Leisure / VIP
Resort (Full-Service)	180 - 500	60 - 78	108 - 390	100 - 500	Leisure / Group
Boutique	150 - 450	58 - 76	87 - 342	15 - 100	Experience Seekers
Extended Stay	80 - 160	72 - 88	58 - 141	80 - 200	Relocations / Projects
All-Inclusive Resort	250 - 700	65 - 85	163 - 595	150 - 800	Leisure / Families
Hostel / Shared	20 - 60	50 - 80	10 - 48	20 - 200 beds	Backpackers / Students
Casino Hotel	100 - 350	80 - 95	80 - 333	500 - 3000+	Gaming / Entertainment
Airport Hotel	100 - 200	70 - 90	70 - 180	150 - 500	Transient / Crew
Vacation Rental (Avg)	100 - 300	40 - 65	40 - 195	1 - 10 units	Leisure / Families
Serviced Apartments	120 - 250	70 - 85	84 - 213	30 - 150	Corporate / Relocation

Frequently Asked Questions

No. Per USALI standards, complimentary (comp) rooms are excluded from both numerator and denominator. Including them deflates ADR artificially. Only rooms generating revenue count as "rooms sold." If your PMS includes comps in the sold count, subtract them manually before entering data into this calculator.

ADR measures price efficiency - the average rate you capture per sold room. RevPAR measures yield efficiency - revenue generated per available room, factoring in unsold inventory. A hotel can have a high ADR of $300 but low RevPAR of $150 if occupancy is only 50%. Revenue managers typically optimize RevPAR because it balances rate and volume. Use ADR for rate-setting strategy; use RevPAR for overall performance benchmarking against competitors.

Out-of-order (OOO) rooms should be subtracted from the total available room count. If your hotel has 200 keys but 15 are under renovation, enter 185 as available rooms. Failing to adjust inflates the denominator, which depresses both occupancy rate and RevPAR, making performance appear worse than reality. USALI recommends separating OOO from out-of-service (OOS) rooms - OOS rooms are temporarily offline (a few hours) and typically remain in the available count.

Include only net room revenue: the room rate charged to the guest after discounts and package allocations. Exclude taxes, resort fees, parking charges, minibar, F&B, and incidental charges. If your property sells packages (e.g., room + breakfast at $250), you must allocate the room portion separately. USALI provides guidance on allocation methods. Incorrect allocation skews ADR and misrepresents rooms-department profitability.

Direct comparison requires normalization. A $150 ADR in Bangkok and $150 ADR in Manhattan represent vastly different performance levels relative to operating costs, labor markets, and guest expectations. Use ADR Index (your ADR ÷ comp set ADR × 100) from STR reports for meaningful cross-property comparison. An index above 100 means you are capturing a rate premium versus competitors. Currency fluctuations add another distortion layer for international comparisons - use constant-currency ADR when possible.

ADR varies dramatically by season. A beach resort may see ADR of $400 in summer and $120 in winter. Evaluating annual ADR alone masks this volatility. This calculator supports multi-period input so you can compare peak vs. off-peak performance. For budgeting, weight each period's ADR by rooms sold in that period rather than simple averaging across months. Also track ADR by day-of-week (weekday vs. weekend) to identify rate optimization opportunities.

When marginal rate increases cause occupancy to drop faster than the rate gains, total revenue declines. This inflection point depends on price elasticity of demand in your market. A rule of thumb: if a 1% rate increase causes more than 1% occupancy decline, the rate is too aggressive. Monitor RevPAR - if it decreases while ADR increases, you have crossed the optimal rate threshold. Group-heavy hotels face this more acutely because group rates are negotiated, and losing a 200-room block to save $10 per room rarely makes financial sense.