Work out average daily rate instantly with clear inputs, formula shown and shareable results.
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.
ADR
ADR = Room revenue / Room nights sold
Paid ADR
Paid ADR = Room revenue / (Rooms sold - Complimentary rooms)
No. ADR is net of occupancy taxes and usually excludes non-room revenue such as breakfast where it is separately priced.
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.