ADR = Total Room Revenue ÷ Rooms Sold
ADR (Average Daily Rate) is the average rate paid per occupied room. ADR rising over time at flat occupancy means you are successfully extracting more value per booking — a clean pricing-power signal.
ADR = Total Room Revenue ÷ Rooms Sold
Example. Total room revenue ₹1,10,000 from 22 rooms sold. ADR = ₹1,10,000 ÷ 22 = ₹5,000.
Common mistakes
- Including non-room revenue (F&B, spa) in the numerator — ADR is room-only.
- Including complimentary rooms (staff use, comp upgrades) in the denominator — ADR uses paid occupied rooms only.
- Reporting blended ADR across very different segments. Corporate ₹3,500 + leisure ₹6,000 averages to ₹4,800, hiding both stories.