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.

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. Condotel

    A condominium project that is operated as a hotel with a registration ...
  5. Revenue Per Available Room - RevPAR

    A performance metric in the hotel industry, which is calculated ...
  6. Transferable Points Programs (UAL)

    With transferable points programs, customers earn points by using ...
Related Articles
  1. Home & Auto

    Make This The Year You Get Vacation Insurance

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

    Introduction To International REITs

    Avoid being left behind as REITs expand beyond U.S. borders.
  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. Fundamental Analysis

    Will Airlines Keep Flying High in 2016?

    Learn why the airline industry has such a unique set of variable and fixed costs that makes it very difficult to forecast its performance each year.
  6. Personal Finance

    Zika Virus: Latest Advice on Staying Safe

    Zika has hit the U.S. Here’s the most recent update on what’s known about the virus, how it spreads, who’s at highest risk and how to avoid it.
  7. Personal Finance

    Oil Prices Are Down, Airfares Aren't. What's Up?

    Oil is down to $30 a barrel. But consumers are still hit with fuel surcharges on airline tickets.
  8. Personal Finance

    How Safe Is Traveling in Thailand?

    Exercise the kinds of cautions that are necessary anywhere in the world. And then pay attention to these three particular situations.
  9. Investing News

    How Zika Is Infecting the Travel Industry

    The Zika virus is declared a public health emergency as airlines, cruise lines and other travel companies accommodate customers and assess the damage.
  10. Personal Finance

    Free Snacks in Coach at American Airlines. Really. (AAL)

    The last of the big three finally throws a bone (well, a cookie) to its non-elite customers.
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 >>
Hot Definitions
  1. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  2. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  3. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  5. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center