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