Hotel · Glossary

ADR (Average Daily Rate)

Also called: average daily rate, ARR

How it works

ADR ignores unsold rooms, so it can rise while the hotel gets emptier. Read it together with occupancy and RevPAR.

Use revenue excluding GST and exclude complimentary and house-use rooms so ADR reflects paid business.

Example

₹28,70,000 of room revenue ÷ 820 room-nights sold = ₹3,500.

Frequently asked questions

Should ADR include GST?

No. Use room revenue excluding GST so ADR compares correctly across periods and properties.

Related termsRevPARNight audit

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