Average Daily Rate Calculator

Work out average daily rate instantly with clear inputs, formula shown and shareable results.

About Average Daily Rate Calculator

ADR is room revenue divided by rooms sold. Complimentary rooms should be excluded from the denominator when measuring commercial rate performance, otherwise giving rooms away appears to reduce the rate achieved on rooms actually sold.

Formulas

ADR

ADR = Room revenue / Room nights sold

Paid ADR

Paid ADR = Room revenue / (Rooms sold - Complimentary rooms)

Worked example

With the default values below, Average Daily Rate Calculator returns Average daily rate of $9,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Room revenue: 22,320,000
Room nights sold: 2,480
Complimentary room nights included: 40
Target average daily rate: 9,500

Results

Average daily rate: $9,000.00
ADR excluding complimentary rooms: $9,147.54
Gap to target ADR: -$500.00
Revenue value of complimentary rooms: $365,901.64

Step by step

1Values used
2ADR
3Paid ADR
4Average daily rate= 9,000.00
5ADR excluding complimentary rooms= 9,147.54
6Gap to target ADR= -500.00
7Revenue value of complimentary rooms= 365,901.64

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Should ADR include taxes?

No. ADR is net of occupancy taxes and usually excludes non-room revenue such as breakfast where it is separately priced.

Why does ADR matter more than occupancy?

Because rate flows almost entirely to profit while occupancy brings variable cost with it. A point of ADR is worth more than a point of occupancy.