Investopedia explains 'Average Daily Rate - ADR'
For example, if a hotel has average daily revenue over a calendar quarter of $50,000 and has 500 rooms available per day, the ADR would be $100. This ADR would be used to compute the trend over time, particularly in relation to the ADR in the previous calendar quarter and the ADR in the year-ago quarter. It would also be used as a basis for comparing operating performance against other hotels that have similar characteristics such as size, clientele and location.
|