Understanding Average Daily Rate (ADR)
Real-world scenario: A typical Average Daily Rate (ADR) case uses room revenue 27000 and rooms sold 180. Enter the same figures below to reproduce the worked path.
What is Average Daily Rate (ADR)?
A pricing KPI for hotels. Pair with occupancy and RevPAR; do not confuse ADR with average guest check (F&B covers).
- Room revenue only (exclude F&B unless policy says otherwise)
- Same period as rooms sold
- Currency matches your PMS
The Formula
How we calculate. ADR = room revenue ÷ rooms sold for the period. See our methodology and accuracy policy .
Worked Example
Common Use Cases
- Rate strategy: ADR vs competitors
- Budget vs actual: ADR variance
- RevPAR bridge: rate × occupancy
Pro Tips
- Exclude packages carefully
- Align complimentary room treatment
- Pair with occupancy %
| Scenario | When to use |
|---|---|
| Percent of a number | Finding a part of a whole (tax, tip, score) |
| Percent change | Comparing old vs new values |
Limitations: Average Daily Rate (ADR) results are educational hotel and restaurant planning aids—not accounting, tax, or franchise reporting advice. Confirm definitions with your PMS, POS, and brand standards.
Common mistakes
- Swapping part and whole: The denominator must be the full total, not a subset.
- Rounding too early: Carry extra decimal places through multi-step work before rounding the final percent.
- Mixing percent and decimal forms: Enter rates in the format the calculator labels expect.
The worked example for average daily rate was verified with the calculator form on this page—enter the same values to confirm the result.
When to use this calculator
- Use this page when your wording matches average daily rate and the form labels on screen.
- Use percent of a number for “what is X% of Y?” problems.
- Use number is what percent when you know part and whole and need the percent.
Still unsure about average daily rate? Start with the quick answer above, then open the linked calculator that matches your wording.
❓ Frequently Asked Questions
How do I use this average daily rate calculator?
For average daily rate (percentage calculator), enter the values labeled on the form, then press Calculate. Compare the result to the worked example on this page.
What formula does this page use?
See the quick answer and formula box above for average daily rate—the same percentage calculator expression is applied to your inputs.
What if my result looks wrong?
When checking average daily rate, re-check part vs whole (or rate vs base), rounding, and whether percents were entered as 25 rather than 0.25 when the form expects percents.
Authoritative References
For hotel and restaurant performance concepts, consult:
- AHLA — lodging industry context
- Hospitality Net — industry explainers
- National Restaurant Association — restaurant operations context