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Revenue
ADRAverage Daily Rate
Average Daily Rate is the average price paid per booked night over a period. It is calculated from room revenue divided by the number of nights actually sold, so it describes the rate guests paid rather than the rate advertised, and it ignores nights that stayed empty.
How ADR is calculated
ADR = Room revenue ÷ Nights sold
Why ADR matters for your revenue
ADR tells you whether pricing decisions are landing, separate from how full the property is. A rising ADR with flat occupancy means demand supports higher rates; a falling ADR usually means discounting is filling the calendar at the expense of yield.
Related terms
- RevPARRevenue Per Available Room measures revenue earned for every night the property was available to book, whether or not it sold. It combines rate and occupancy into one figure, which makes it the standard way to compare performance between periods, properties or markets.
- RevPANRevenue Per Available Night is the short-term rental equivalent of RevPAR, applied to a whole property rather than a hotel room. It divides total booking revenue by every night the property was available in the period, including nights blocked for maintenance only if they were bookable.
- Occupancy rateOccupancy rate is the share of available nights that were booked in a period, expressed as a percentage. Nights the owner blocked for personal use are normally excluded from the available count, so the figure reflects commercial performance rather than calendar availability.
- Dynamic pricingDynamic pricing is the practice of changing nightly rates continuously in response to demand signals: local occupancy, competitor rates, events, day of week, seasonality and how far ahead the booking falls. Rates are recalculated regularly rather than fixed at the start of a season.
Dynamic Pricing at Pinnacle Path
ADR sits inside our dynamic pricing work. See how we apply it market by market.