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ADR calculator

Work out your hotel's average daily rate: the average price you were paid for each room-night you sold. Enter your room revenue and room-nights sold, and the result updates as you type.

Total revenue from room sales in the period, excluding GST, breakfast and other extras.

One room occupied for one night counts as 1. Leave out complimentary and staff rooms.

Your ADR

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Next: calculate your RevPAR

Use revenue excluding GST. The maths runs in your browser; ClearHost doesn't store your figures.

Definition

What is ADR in hotels?

ADR (average daily rate) is the average amount a hotel earns for each room-night it sells. It's one of the three core hotel KPIs, alongside occupancy and RevPAR, and the quickest way to see whether your pricing is moving in the right direction.

ADR only looks at rooms you actually sold. Empty rooms don't count, which makes it a pure measure of price: it tells you what guests paid, not how full you were.

The ADR formula

ADR = room revenue ÷ room-nights sold

Room revenue is what you earned from selling rooms in the period, excluding GST, breakfast and other extras. Room-nights sold counts each room occupied for one night as one, so a guest staying three nights is three room-nights. Leave complimentary and staff rooms out of both figures, or they'll drag ADR down.

A worked example

A 30-room hotel sells 594 room-nights in a 30-day month and earns ₹19,00,800 from rooms. Its ADR is ₹19,00,800 ÷ 594 = ₹3,200.

Now say the next month it sells 50 extra room-nights at a ₹2,000 promotional rate. Room revenue rises to ₹20,00,800, but ADR falls to about ₹3,107. More guests, at a lower average price: whether that was a good trade is a question for RevPAR.

Daily, monthly and yearly ADR

The formula is the same for any period: use the room revenue and room-nights sold for exactly those dates. Don't average your daily ADRs to get a monthly figure, because a night with 2 rooms sold would count as much as a night with 28. Divide the month's total room revenue by the month's total room-nights sold instead.

Raise your rate

6 ways to improve your ADR

A higher ADR rarely comes from a blanket price rise. It comes from charging the right rate for each date, room and guest.

Price by demand, not by season

Raise rates when weekends, weddings and festivals push demand up, instead of fixing one tariff for the whole season.

Upsell better room types

Offer upgrades at booking and at check-in. A guest moving from Standard to Deluxe lifts ADR without adding a single room-night.

Set length-of-stay rules on peak dates

Minimum stays on your busiest nights stop one-night bookings from blocking longer, higher-value stays.

Win more direct bookings

Guests booking on your own website respond to packages and perks, not just the lowest OTA price, so it's easier to sell at your full rate.

Earn better reviews

Strong review scores let you charge more than nearby hotels without losing bookings. Reply to every review and fix what guests keep mentioning.

Watch your competitors' rates

Track what similar hotels nearby charge for the same dates, so you never underprice a night when the whole market is busy.

Related metrics

ADR vs occupancy vs RevPAR

ADR is most useful read alongside the other two core KPIs. Each one answers a different question about the same month.

ADR vs occupancy

Occupancy tells you how full you were; ADR tells you what guests paid. They usually pull against each other: discounting raises occupancy but lowers ADR. Check both before deciding a month went well. Calculate your occupancy rate.

ADR vs RevPAR

RevPAR = ADR × occupancy. Because it counts empty rooms too, RevPAR shows whether a higher rate actually earned more or just left more rooms unsold. In the example above, ₹3,200 ADR at 66% occupancy gives a RevPAR of ₹2,112. Calculate your RevPAR.

ADR vs ARR

Many Indian hotels say ARR (average room rate) where others say ADR. Some teams calculate ARR over a longer period or per room type, but the formula is the same: room revenue divided by rooms sold. Use whichever term your team already reports, and keep the method consistent.

ADR questions

ADR, answered

There's no single good ADR: it depends on your city, star category, room types and season. A good ADR is one that's rising against the same period last year and holding up against similar hotels nearby, without your occupancy falling as a result.
No. Calculate ADR on room revenue excluding GST. Tax is collected on behalf of the government, so including it would overstate what each room earns and make comparisons across tax-rate changes misleading.
Where you can separate it, keep breakfast and other meal-plan revenue out of room revenue, so ADR reflects the room alone. Track the food revenue separately; it counts towards TRevPAR.
No. Leave complimentary and staff rooms out of both room revenue and room-nights sold. Counting them as zero-revenue room-nights pulls ADR down without telling you anything about your pricing.
Neither works alone. A high ADR at low occupancy can earn less than a moderate rate at high occupancy. That's why most hotels also track RevPAR, which combines the two into one number.
Daily for pricing decisions, and weekly or monthly for trends. Compare each month with the same month last year rather than the month before, so seasonality doesn't distort the picture.

Track your ADR live, not in a spreadsheet

ClearHost brings bookings from every channel into one dashboard, so ADR, occupancy and revenue update as reservations come in.