Average Daily Rate - ADR


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.

BREAKING DOWN '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.

  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 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. Personal Finance

    Top Resorts for Multigenerational Family Vacations

    After a week at one of these resorts that cater to families of all ages, you might swear off those exhausting road trips to Grandma’s for good.
  6. Investing

    5 Recession Resistant Industries

    No companies are completely recession proof, but some industries perform better in a weak economy than others.
  7. Investing

    How Airbnb Grew from a SF Loft into a World Leader

    The remarkable story of Airbnb's growth to a company valued at over $25 billion.
  8. Investing Basics

    The Top Five Public Railroad Stocks in the U.S.

    We offer a breakdown of the seven Class I railroads in North America based on their annual revenues.
  9. Economics

    A Long Road to Full Diplomatic Relations with Cuba

    Over the past 50 years, the U.S. and Cuba have remained at odds, only recently to restore diplomatic ties. What does this mean?
  10. Personal Finance

    10 Tips for Renting a Vacation Home on Airbnb

    Here's a list to make sure that you have a seamless vacation using Airbnb.
  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 >>

You May Also Like

Hot Definitions
  1. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  3. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  4. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  5. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
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!