What is ADR in a hotel?
It is the real average selling price, not your published rate. It picks up the effect of discounts, promotions, group rates and OTA rate plans, so it usually sits below what you think you are charging.
How it is calculated
- Formula: room revenue ÷ rooms sold.
- Example: €107,442 across 762 room nights sold gives an ADR of €141.
What counts and what does not
- Counts: accommodation only.
- Does not count: breakfast billed separately, parking, the spa or any other extras.
- Not in the denominator: empty rooms, complimentary stays, house use and staff rooms. Put them in and your ADR drops artificially.
The usual mistake
Comparing ADR against last year without looking at the channel mix. An ADR that goes up three euros while the share of OTA bookings grows ten points is, in net terms, an ADR that goes down: the commission eats the difference and then some. That is why ADR is always read alongside occupancy, RevPAR and the split by channel.