Average Daily Rate - wikipedia Average Daily Rate Average Daily Rate ( commonly referred to as ADR ) is a statistical unit that is often used in the lodging industry. The number represents the average rental income per paid occupied room in a given time period. ADR along with the property 's occupancy are the foundations for the property 's financial performance. ADR is one of the commonly used financial indicators in hotel industry used to measure how well a hotel performs compared to its competitors and itself ( year over year ). It is common in the hotel industry for the ADR to gradually increase year over year bringing in more revenue. However, ADR itself is not enough to measure the performance of the hotel. One should combine ADR, occupancy and RevPAR ( revenue per available room ) to make a sound judgment on hotel performance. Formula ADR is calculated by dividing the rooms revenue earned by the number of rooms sold, with house use rooms and complimentary rooms excluded from the denominators. Jump up ^ Reid, Robert ( 2009 ). Hospitality Marketing Management, 5th Edition. Wiley and Sons. pp. 305 -- 306. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Average_daily_rate&oldid=796820073 '' Categories : Business economics Business terms Hospitality management Talk About Wikipedia Español Français Bahasa Indonesia Edit links This page was last edited on 23 August 2017, at 07 : 13. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: what is the meaning of adr in hotel industry
Answer: Average Daily Rate