Average Daily Rate - ADR

Average daily rate is often used in hotels (or the hospitality industry in general) to refer to the charge per day to rent a room. This number, along with occupancy, are both Key Performance Indicators (KPI). Combine those two, and you come up with revenue per available room (RevPAR) which can be used to evaluate the performance of companies in this sector.

The ADR can be found by dividing the room revenue by the number of rooms rented. This leaves out some numbers, such as no-show charges, but will give an average and let the hotel see if they are operating at or below occupancy (and potential revenue).