What Is Average Daily Rate (ADR)?
Average Daily Rate (ADR) is one of the most important financial KPIs used across the hospitality industry to assess the average revenue earned per room sold. Rather than considering all available rooms, ADR zeroes in on only the rooms that were actually sold, giving a clear view of your pricing performance.
The formula is simple:
Assume 100 rooms were sold and total revenue was $15,000 for the day. The ADR would then be $150. This metric excludes unsold inventory, focusing only on active revenue generation—making it a vital tool for understanding your yield and refining your pricing approach.
Why ADR Is Crucial for Hotel Success
Your ADR doesn’t just tell you how much you're charging as it tells you how much guests are willing to pay. Here’s why this matters:
While ADR tells you how well your sold rooms are doing, pairing it with occupancy rate and RevPAR gives you a complete picture of your hotel’s health.
How the Syncinns ADR Calculator Helps You
Designed for modern hoteliers, Syncinns’ ADR Calculator takes the guesswork out of number crunching. Whether you're a boutique property owner or manage a multi-location chain, our tool is built to make strategic pricing analysis easy and actionable.
Here’s how it works:
