Business Terms: Average Daily Rate

Average daily rate

Average Daily rate is commonly used to explain the statistical unit that are often used in the lodging
industry worldwide. The number represents the average rental income per paid occupied room in  a given time period.

ADR and property’s occupancy are foundations for the property’s financial performance. It helps hotels to know how well they performed compared to their competitors. But if you really want to measure the performance of a hotel, you should use more indices to do that.