What does ADR stand for in hotel performance metrics?

ADR stands for Average Daily Rate, which is a critical metric in the hospitality industry used to assess the performance of a hotel. It represents the average revenue earned for an occupied room per day, calculated by dividing the total room revenue by the number of rooms sold during a specific time period. This metric is essential for hoteliers because it provides insight into pricing strategies, market demand, and overall financial performance. Understanding ADR helps hotel management evaluate their pricing and occupancy strategies to optimize revenue.

In the context of hotel performance, tracking ADR can indicate trends in both pricing and market conditions, making it an indispensable tool for revenue management and forecasting. By monitoring changes in ADR over time or in comparison to competitors, hotels can make informed decisions to enhance profitability.