π¨ ADR Calculator
Average daily rate, occupancy, and RevPAR in one place.
Average daily rate per sold room
Estimates for planning only, not financial advice.
ADR, average daily rate, is room revenue divided by rooms sold: the average price guests actually paid. A hotel with $48,500 in room revenue across 310 sold rooms runs a $156.45 ADR. It measures pricing power in isolation. Add occupancy (rooms sold divided by rooms available) and you get RevPAR, revenue per available room, which is ADR times occupancy: $156.45 at 72 percent occupancy is about $112.79 RevPAR. Professionals quote all three because each one alone misleads.
How to Use This Calculator
Enter room revenue (net of taxes) and rooms sold for any period: a night, a week, a month. Add rooms available to reveal occupancy and RevPAR. The calculator shows ADR, occupancy, RevPAR, and the revenue you are leaving on the table in empty rooms at your current ADR.
Enter room revenue excluding taxes and fees, and the number of rooms sold (paid occupied rooms).
Enter rooms available (total rooms times nights in the period) to compute occupancy and RevPAR.
Compare ADR against your competitive set, not against your own history alone. A rising ADR with falling occupancy needs the RevPAR check before you celebrate.
The Formulas
The definitions are strict because comparability is the point: revenue net of taxes, sold rooms excluding comps, available rooms counting every room every night whether sellable or not (out-of-order rooms still count as available in STR methodology, which surprises newcomers). Deviate from the standard definitions and your numbers stop being comparable to benchmarks, which defeats the purpose of computing them.
Worked Example: $48,500 on 310 Rooms
Room revenue: $48,500. Rooms sold: 310. ADR = $48,500 / 310 = $156.45. Rooms available: 430. Occupancy = 310 / 430 = 72.1 percent. RevPAR = $156.45 x 0.721 = $112.79, equivalently $48,500 / 430. Empty-room opportunity: 120 unsold rooms x $156.45 = $18,774 of room revenue not captured that period, before considering whether discounting to fill them would have been profitable.
Now the trade-off test: raise rates 10 percent to $172.10 ADR but lose 30 sold rooms (280 sold). New revenue = 280 x $172.10 = $48,188, slightly down, and occupancy falls to 65.1 percent. ADR rose, revenue fell: the classic trap. The rate increase only pays if the occupancy loss is small, which is why revenue managers test elasticity instead of assuming it.
ADR vs RevPAR vs TRevPAR
Each metric answers a different question, and quoting the wrong one is how bad decisions get justified. ADR answers "how strong is our pricing." Occupancy answers "how full are we." RevPAR answers "how much room revenue does each room generate," combining both. TRevPAR answers "how much total revenue does each room generate," adding food, beverage, and other spend.
| Metric | Formula | Use it to |
|---|---|---|
| ADR | Revenue / rooms sold | Judge pricing power |
| Occupancy | Sold / available | Judge demand capture |
| RevPAR | ADR x occupancy | Judge rooms revenue overall |
| TRevPAR | Total revenue / available | Judge the whole property |
My rule: optimize RevPAR, report ADR with context, and never let a record ADR distract from a revenue decline. Discount channels, OTA mix, and comp rooms all distort ADR, so pair it with net revenue per sold room (after distribution costs) for channel decisions.
Raising ADR Without Killing Occupancy
Sustainable ADR growth comes from value, not from hoping guests do not notice. Renovated rooms and better reviews support higher rates; unrenovated rooms with rising rates just train guests to book the competitor. Length-of-stay pricing, day-of-week yield management, and packaging (room plus breakfast at a premium to the room-only rate) lift realized ADR without lifting the headline rate. Corporate negotiated rates look like ADR dilution but buy base occupancy that lets you yield the rest higher.
For vacation rental hosts, the same math applies at smaller scale: track ADR per booked night, occupancy across the month, and RevPAR against nearby listings, and resist judging the business on nightly rate alone. A $233 ADR at 40 percent occupancy loses to a $190 ADR at 75 percent occupancy every time. If you are evaluating a rental property purchase, our rental property calculator turns these metrics into investment returns, and the ROI calculator frames the capital decision.
Reading ADR Against the Right Benchmarks
ADR means little without occupancy: a $300 ADR at 40 percent occupancy loses to a $200 ADR at 80 percent on the same room count. That is why revenue managers quote RevPAR first and ADR second. The healthy pattern is both rising together; ADR rising while occupancy falls means you are pricing out demand, and both falling means the market, not your pricing, is the problem.
Segment before you celebrate. Weekday ADR driven by corporate travel and weekend ADR driven by leisure are different businesses sharing a building; blending them hides which one is slipping. The same goes for channel mix: OTA bookings at 15 to 20 percent commission produce a lower net ADR than direct bookings, so a rising gross ADR with a shifting channel mix can mask falling net revenue. Track net ADR after commissions by segment, and compare against a competitive set of similar hotels rather than the market average, which mixes luxury with budget.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is ADR in the hotel industry?
Average daily rate is room revenue divided by rooms sold: the average price guests actually paid per occupied room. A hotel earning $48,500 from 310 sold rooms has an ADR of $156.45. It measures pricing power, not overall performance, because it ignores empty rooms.
What is the ADR formula?
ADR = total room revenue / number of rooms sold. Use rooms sold (occupied), not rooms available. Complimentary rooms are usually excluded from both the revenue and the room count. For a period, sum the revenue and the sold rooms across the days, then divide.
What is the difference between ADR and RevPAR?
ADR divides revenue by rooms sold; RevPAR (revenue per available room) divides by all rooms, sold or not. RevPAR = ADR x occupancy rate. A hotel with $156.45 ADR at 72 percent occupancy has RevPAR of $112.65. ADR tells you pricing strength, RevPAR tells you the combined result of price and fill. Managers watch both because raising rates while emptying the hotel can lift ADR and sink RevPAR.
What is a good ADR?
Only against your competitive set and market. A $156 ADR is strong for a suburban select-service hotel and weak for a downtown luxury property. Benchmark against STR reports for your segment and market, not national averages. Trend matters more than level: ADR growing faster than inflation with stable occupancy is genuine pricing power.
Should taxes and fees be included in ADR?
No. ADR uses room revenue net of taxes; resort fees and service charges are typically excluded from the standard definition too, though some hotels track them separately. Including taxes inflates ADR and breaks comparability with STR benchmarks. Keep the definition consistent period to period or the trend lies.
How do discounts and OTA commissions affect ADR?
Discounts lower the revenue in the numerator, so heavy discounting shows up as falling ADR. OTA commissions are usually recorded as an expense, not a revenue reduction, so the ADR looks the same whether the guest booked direct or through an online travel agency, but net revenue per room is lower on OTA bookings. Track net ADR (after distribution costs) separately for channel decisions.
Can ADR be too high?
Yes, when it costs you occupancy. If a $20 rate increase lifts ADR 12 percent but drops occupancy 15 points, RevPAR falls and total profit usually falls with it, since empty rooms still carry fixed costs. The right question is never "how high can ADR go" but "what rate maximizes total revenue," which is why revenue managers optimize RevPAR, not ADR.
How is ADR calculated for a vacation rental?
The same way: rental revenue divided by booked nights. A cabin earning $4,200 over 18 booked nights has an ADR of $233.33. Vacation rental hosts should also compute occupancy (booked nights / available nights) and RevPAR the same way hotels do; the metrics transfer directly, and they beat judging performance on nightly rate alone.
What is TRevPAR and how does it relate to ADR?
TRevPAR (total revenue per available room) adds food, beverage, spa, and other revenue to the numerator. A resort with $156 ADR but strong spa and dining can have TRevPAR far above its RevPAR. ADR and RevPAR measure the rooms department; TRevPAR measures the whole property. Use TRevPAR when non-room revenue is material.
How often should hotels review ADR?
Daily for operations (yesterday's ADR vs forecast), weekly for tactics (pickup pace, channel mix), and monthly against the competitive set for strategy. Annual ADR growth versus inflation and versus the comp set is the report card. Reacting to one soft Tuesday is noise; reacting to a six-week trend is management.