Calculate Average Daily Rate (ADR), occupancy, and RevPAR from room revenue and sold room nights, with live charts and practical hotel-performance analysis.
Revenue per sold room versus revenue per available room
Live
Performance snapshotUpdates with every input
ADR sensitivity
How the same revenue changes when room nights sold change
Live
Mathematical sensitivityCurrent point highlighted
LIVE SCENARIO INTELLIGENCE
What your ADR is really telling you
Updates live
Revenue per sold room—average rate actually earned
Room utilization—sold room nights / available
ADR premium—ADR above RevPAR
Rooms unsold—available room nights not sold
ADR should be read together with occupancy and RevPAR; a higher rate does not by itself mean stronger overall room revenue performance.
DECISION TOOLS
See the impact before you change the pricing assumption
Use these live comparisons to understand the trade-off between rate, room nights sold and revenue.
Live
Rate signalLIVE
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Based on ADR relative to RevPAR
Revenue bridgeLIVE
— sold— unsold
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ADR performance snapshot
Live
Metric
Value
How to read it
Your scenario
$
Room revenue generated during the selected reporting period.
room nights
Count only revenue-generating room nights.
room nights
Rooms available × days in the reporting period.
days
Used to explain the daily operating context; ADR itself does not require 30 days.
ADR measures the average revenue earned per sold room night. It does not, by itself, measure occupancy, total revenue, profitability or market value.
THE CONCEPT
What is ADR?
Average Daily Rate (ADR) is a hospitality performance metric that answers one deliberately narrow question: how much room revenue did the property earn, on average, for each sold room night? It is a rate metric, not an occupancy metric and not a complete profitability measure.
That distinction matters. If two hotels report the same ADR but one sells far more room nights, their revenue contribution is not the same. Conversely, a property can increase ADR while selling fewer rooms. A sound analysis therefore reads ADR beside occupancy and RevPAR rather than treating ADR as a standalone verdict.
ADR is a ratio: room revenue divided by revenue-generating room nights. The denominator is sold room nights, not the number of rooms the property owns.
ADR is not RevPAR
ADR uses only sold room nights. RevPAR spreads room revenue across all available room nights. That is why a property can have a high ADR and a lower RevPAR at the same time: empty rooms still occupy capacity.
ADR
$140.00
Revenue earned per sold room night.
FormulaRevenue ÷ Sold
UsesPricing
RevPAR
$91.00
Revenue earned per available room night.
FormulaRevenue ÷ Available
UsesRate + fill
What belongs in the ADR numerator?
The core calculation uses room revenue for the same period as the sold room nights. Ancillary revenue such as food, beverage, spa or parking should not be mixed into room revenue merely to make ADR larger. Complimentary and staff room nights should not be counted as revenue-generating sold rooms.
Analyst's rule: Keep the numerator and denominator conceptually aligned. If your revenue number includes services that do not belong to room revenue, the resulting “ADR” no longer describes the room-rate metric you intended to measure.
FORMULAS
ADR formulas and related hotel metrics
Core ADR
ADR = Room revenue ÷ Rooms sold
Room revenue = revenue attributed to roomsRooms sold = revenue-generating room nights
Occupancy
Occupancy = Rooms sold ÷ Available room nights × 100
Available room nights = rooms available × days in the period
RevPAR
RevPAR = Room revenue ÷ Available room nights
Equivalent relationship: RevPAR = ADR × Occupancy when occupancy is expressed as a decimal.
Because RevPAR = ADR × occupancy, a rate change and an occupancy change can offset each other. This is why ADR should be interpreted in context.
EXAMPLES
ADR worked examples
Example 1 — 30-day city hotel
Suppose a 40-room hotel records $109,200 in room revenue and 780 sold room nights over a 30-day month.
Step 1 — ADR
$109,200 ÷ 780 = $140.00
Each sold room night generated an average of $140 in room revenue.
Step 2 — Occupancy
780 ÷ (40 × 30) = 65%
The property sold 65% of its available room nights.
Step 3 — RevPAR
$109,200 ÷ 1,200 = $91.00
RevPAR is lower than ADR because it includes the 35% of room nights that were not sold.
Example 2 — Same revenue, more rooms sold
If the same $109,200 of room revenue came from 900 sold room nights, ADR would fall to $121.33. The revenue did not change; the denominator did. This is a useful reminder that ADR can move simply because the mix of sold rooms changed.
Visual example 01
City hotel — 65% occupancy
$109,200 ÷ 780 = $140 ADR
A 40-room hotel over 30 days has 1,200 available room nights and sells 780.
Visual example 02
Same revenue — more rooms sold
$109,200 ÷ 900 = $121.33 ADR
Revenue stays fixed, but the denominator grows. ADR therefore declines even though total room revenue is unchanged.
Visual example 03
ADR vs RevPAR
$140 × 0.65 = $91 RevPAR
RevPAR is lower because it spreads room revenue across every available room night, including unsold capacity.
PRACTICAL GUIDANCE
How to interpret ADR responsibly
ADR is useful because it isolates one dimension of hotel performance: the average rate realized on rooms that generated revenue. It is not a direct measure of profit. A property can report a strong ADR while carrying weak occupancy, high distribution costs or high operating expenses.
When ADR rises
Ask whether the property sold enough rooms to preserve or improve RevPAR. Rate growth accompanied by collapsing occupancy can tell a different story from rate growth with stable demand.
When ADR falls
Check whether the lower rate brought enough additional room nights to improve total revenue or RevPAR. Discounting is a trade-off, not a metric in itself.
Where ADR is used
Revenue management
Rate setting
Hotel reporting
Trend analysis
Channel analysis
Rate mix
Budgeting
Forecasts
ADR by channel
Direct bookings, online travel agencies, corporate contracts and group business can produce different realized rates and commission structures. Comparing ADR by channel can therefore reveal a rate-mix issue that a property-wide ADR hides.
Channel ADR should be compared with commissions, cancellations, room type and length of stay. A higher gross ADR does not automatically mean higher net contribution.
FAQ
ADR calculator FAQ
What does ADR mean in a hotel?
ADR means Average Daily Rate. It is the average room revenue earned for each sold room night during a defined reporting period.
What is the ADR formula?
ADR = total room revenue ÷ rooms sold. The revenue and sold room nights must refer to the same period and the same room-revenue definition.
Does ADR include food and beverage revenue?
Not in the standard room-rate calculation. ADR is intended to describe room revenue per sold room night, so ancillary revenue should not simply be added to the numerator.
What is the difference between ADR and RevPAR?
ADR divides room revenue by sold room nights. RevPAR divides room revenue by available room nights, so RevPAR incorporates occupancy as well as achieved rate.
Can a higher ADR be bad?
A higher ADR is not automatically a better operating outcome. If rate rises while occupancy falls enough to reduce RevPAR or revenue, the property may not have improved its overall room performance.
How often should ADR be calculated?
Daily ADR can be useful for operational monitoring, while monthly and year-over-year views are often more informative for trend analysis because hospitality demand is seasonal.