Average Daily Rate - ADR

AAA

DEFINITION of 'Average Daily Rate - ADR'

A metric widely used in the hospitality industry to indicate the average realized room rental per day. Average daily rate is one of the core indicators - along with other metrics such as occupancy rate and revenue per available room - used to measure the operating performance of a lodging unit such as a hotel or motel. Generally abbreviated as ADR.

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.

RELATED TERMS
  1. Occupancy Rate

    In real estate, the number of units in a building that have been ...
  2. Timeshare

    An ownership model whereby many customers own allotments of usage ...
  3. Revenue Per Occupied Room - RevPOR

    An industry metric used to evaluate companies in the hotel and ...
  4. Revenue Per Available Room - RevPAR

    A performance metric in the hotel industry, which is calculated ...
  5. Condotel

    A condominium project that is operated as a hotel with a registration ...
  6. Transferable Points Programs

    With transferable points programs, customers earn points by using ...
RELATED FAQS
  1. Who are Chipotle's (CMG) main competitors?

    Chipotle Mexican Grill Inc. (CMG), the market leader in the Mexican-style fast casual dining sector, faces direct competition ... Read Full Answer >>
  2. What are the main reasons for investing in the internet sector?

    The main reasons for investing in the Internet sector are the higher-than-average earnings growth, profit margins and return ... Read Full Answer >>
Related Articles
  1. Home & Auto

    Introduction To International REITs

    Avoid being left behind as REITs expand beyond U.S. borders.
  2. Home & Auto

    The Advantages Of Vacation Insurance

    With a few simple policy additions you can protect your holiday plans from being ruined.
  3. Home & Auto

    5 Types Of REITs And How To Invest In Them

    Real estate investment trusts are a sound addition to a diversified portfolio. Learn what you need to know to invest.
  4. Personal Finance

    Shoulder Season: Your Ticket To The Perfect Vacation

    Traveling during the sweet spot between high season and off season can save you money and stress.
  5. Stock Analysis

    GrubHub (GRUB): Will it Deliver?

    Analysts are all over the map on GrubHub, but its latest quarterly numbers look pretty solid.
  6. Personal Finance

    6 Websites Where You Can Book a Private Jet

    These sites can help you get the flights and destinations you desire – and sometimes, even just a seat instead of a whole plane.
  7. Fundamental Analysis

    Which US Airlines Are Poised For Long-Term Gains?

    The US airline industry has undergone a dramatic transformation since the last bear market, with one or two carriers likely to outperform in coming years.
  8. Stock Analysis

    The Delhaize/Ahold Merger: A Buy for Investors?

    The mid-2016 merger of Delhaize Group and Ahold NV will create a supermarket giant, but what will it mean from an investing perspective?
  9. Stock Analysis

    America's Beloved Restaurants: Should You Invest?

    Should you invest in the country's most favorite restaurant brands?
  10. Investing

    The World's Top Emerging Airlines

    Investopedia explores the top emerging airlines in the world and their prospects for growth.

You May Also Like

Hot Definitions
  1. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  2. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  3. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  4. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  5. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  6. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!