Free Hotel Tool

ADR Calculator for Hotels

Q: Can ADR increase while occupancy decreases?

Yes — this is a valid yield management strategy during high-demand periods. However, monitor RevPAR to ensure the ADR gain outweighs the occupancy loss. Propeter's RevPAR optimisation agent calculates the precise rate point that maximizes the combined outcome.

Calculate your Average Daily Rate instantly. Understand your ADR by channel, compare against RevPAR, and see exactly how Propeter’s AI pricing helps you increase it.

ADR Calculator

Average Daily Rate = Total Room Revenue ÷ Total Rooms Sold

Total Room Revenue (for the period)

Total Rooms Sold (occupied room nights)

Total Available Rooms (optional — for RevPAR)

Average Daily Rate (ADR)

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Occupancy Rate

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RevPAR

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Total Revenue

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Rooms Sold

Enter revenue and rooms sold per channel to see ADR by source and your blended ADR.

Channel

Revenue ($)

Rooms Sold

🟢 Direct Booking

🔵 Booking.com

🟠 Expedia

🟡 Corporate / GDS

Blended ADR (All Channels)

What is ADR?

Understanding Average Daily Rate in Hotel Revenue Management

ADR (Average Daily Rate) measures the average revenue earned per occupied room during a specific period. It is one of the three core KPIs every revenue manager tracks daily, alongside Occupancy Rate and RevPAR.

ADR = Total Room Revenue ÷ Rooms Sold

Note: ADR excludes taxes, fees, and ancillary revenue. It measures the base room rate only.

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ADR vs RevPARHigh ADR with low occupancy often results in lower RevPAR than moderate ADR with high occupancy. Always analyze both together.

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ADR by channelDirect bookings typically deliver higher ADR than OTA bookings because no commission is deducted from your revenue.

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ADR vs competitor ADRTrack your ADR against your compset using Propeter’s competitive intelligence to understand your pricing power.

How Propeter’s 13-Stage Rate Engine Increases ADR

Instead of a single price rule, Propeter evaluates every booking request through a 13-stage pipeline — applying demand signals, loyalty tier discounts, promotion eligibility, and upsell opportunities — to produce the optimal price that maximizes ADR without sacrificing occupancy.

Improve Your ADR

Four Proven Strategies to Increase Hotel ADR

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Dynamic Pricing

Propeter’s 13-stage Rate Engine adjusts room rates based on demand signals, competitor positioning, and booking pace — automatically.

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Demand Forecasting

XGBoost + LSTM models predict demand spikes so you increase prices earlier — capturing higher ADR before compression events fill out.

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Competitive Intelligence

Real-time competitor rate monitoring ensures you’re never under-pricing vs. your compset — a direct driver of ADR uplift.

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Upsell at Checkout

The Rate Engine’s Upsell Engine adds ancillary revenue (breakfast, late checkout, transfers) at the optimal checkout moment — boosting effective ADR.

FAQ

Frequently Asked Questions About ADR

What is a good ADR for a hotel?

A good ADR depends on your market, property category, and competitive set. Rather than a universal benchmark, compare your ADR against your compset using Propeter’s rate intelligence. An ADR above your RevPAR index (RevPAI) relative to competitors is a stronger signal than an absolute number.

How often should hotels track ADR?

Revenue managers typically monitor ADR daily and analyze trends weekly or monthly. Propeter’s real-time dashboard shows live ADR alongside occupancy and RevPAR — updated as each booking is made.

Does ADR include taxes and fees?

ADR typically excludes taxes, resort fees, and ancillary charges — focusing only on base room revenue. Propeter’s Tax & Fee Engine (Stage 13 of the Rate Engine) handles these separately and maps them to the correct GL accounts in Xero.

Can ADR increase while occupancy decreases?

Yes — and this is a valid yield management strategy during high-demand periods. However, you must monitor RevPAR to ensure the ADR gain outweighs the occupancy loss. Propeter’s RevPAR optimization agent calculates the precise rate point that maximizes the combined outcome.

Tracking ADR Is the First Step. Optimizing It Is What Propeter Does.

Move beyond manual rate monitoring to AI-powered pricing that increases ADR automatically, every day.

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