Average Daily Rate (ADR)

The average daily rate (ADR) is a hotel industry metric that measures the average revenue generated per available room per day. It is calculated by dividing the total revenue from room sales by the number of available rooms for the period in question.

The ADR is a key metric for hoteliers because it provides a measure of the hotel's profitability. A high ADR indicates that the hotel is able to charge higher rates for its rooms, while a low ADR suggests that the hotel is struggling to fill its rooms.

The ADR can be used to compare hotels within the same market or to track a hotel's performance over time. It can also be used to benchmark a hotel's performance against industry standards.

The ADR is calculated by using the following formula:

```
ADR = Total Room Revenue / Number of Available Rooms
```

Where:

* Total Room Revenue is the total amount of money generated from room sales during the period in question.
* Number of Available Rooms is the total number of rooms that were available for sale during the period in question.

The ADR is a valuable metric for hoteliers because it provides a measure of the hotel's profitability. However, it is important to note that the ADR does not take into account other factors that can affect a hotel's profitability, such as operating expenses and marketing costs.

For example, a hotel with a high ADR may not be as profitable as a hotel with a lower ADR if the higher-priced hotel has higher operating expenses or spends more on marketing.

The ADR is also a static metric, meaning that it does not take into account changes in occupancy over time. A hotel with a high ADR may not be as profitable as a hotel with a lower ADR if the higher-priced hotel has lower occupancy rates.

Overall, the ADR is a useful metric for hoteliers to track, but it should be used in conjunction with other metrics to get a more complete picture of a hotel's profitability.