ADR

Average Daily Rate -- the average price a hotel actually charged per occupied room, shown as a dollar figure. It is the pricing half of RevPAR (the other half being occupancy), and it is the purest read on a hotel's pricing power and the strength of the demand environment. Rate-led growth is the healthiest kind for a hotel because raising ADR flows almost entirely to profit, whereas filling more rooms brings incremental housekeeping, utilities, and labor cost. A rising ADR alongside stable occupancy signals genuine pricing power; ADR falling to prop up occupancy is a warning that demand is soft.

Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ARPU · Average Length Of Stay · Average Ticket

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