Hotel ADR Calculator

Work out your Average Daily Rate from the room revenue you earned and the room nights you sold. Enter your total room revenue and rooms sold, add your available rooms and the period, and the calculator returns your ADR alongside available room nights, occupancy rate, vacant room nights and RevPAR — with an optional what-if room-rate scenario showing the effect of a proposed ADR on room revenue, and an optional AI interpretation of the results. Built for hotels and other room-based accommodation such as B&Bs, guest houses, inns and pubs with rooms. All figures are calculated deterministically from your inputs; nothing you enter is stored, published or indexed. Free, instant and no sign-up required. Tool built 18 September 2026.

What Is Hotel ADR?

ADR stands for Average Daily Rate, and it is the average amount of room revenue earned for each room night that was actually sold. It is one of the three standard performance measures for room-based accommodation, alongside occupancy and RevPAR, and it answers a simple question: when a room was occupied, what did it earn on average? ADR = Room Revenue ÷ Rooms Sold. The denominator is the number of occupied or sold room nights — not the number of rooms the property has, and not the room nights that were available. Vacant rooms play no part in ADR, which is precisely what distinguishes it from RevPAR. Consider an illustrative example: a hotel generates £30,000 of room revenue from 240 occupied room nights in a month. £30,000 ÷ 240 = £125, so its ADR for that month is £125. ADR is most meaningful for hotels, B&Bs, guest houses, inns, pubs with rooms and similar businesses that sell rooms by the night. It is not a natural measure for restaurants, campsites or venues, which use covers, pitches or bookings instead, and it should not be forced onto a business that does not sell room nights.

How to Calculate Hotel ADR

Calculating ADR takes three steps. First, determine the room revenue for the period you are measuring. This should be accommodation revenue only — the amount earned from selling rooms — and it is normally stated before VAT or sales tax so that the rate reflects what the business retains. Second, determine the number of occupied or sold room nights in the same period. One room sold for one night is one room night, so a room let for three nights counts as three; your property management system, booking system or channel manager will usually report this figure directly. Third, divide room revenue by rooms sold. The result is your ADR for that period. What should be left out of room revenue? Restaurant and bar sales, breakfast charged separately, parking, spa treatments, event hire and other ancillary income are not room revenue and will inflate ADR if they are included. Complimentary rooms and staff rooms are usually excluded from both revenue and rooms sold. The most common error is mixing periods — revenue for a month against room nights for a week — so make sure both figures cover exactly the same dates and the same set of rooms before you divide. The calculator applies these rules, refuses to divide by zero, and tells you plainly if rooms sold exceed the room nights available.

Hotel ADR vs Occupancy

ADR and occupancy measure two different things, and a property needs both to understand how it is trading. Occupancy measures volume: the share of available room nights that were sold, expressed as a percentage. ADR measures price: the average revenue earned per room night that was sold. A property can run a high occupancy at a low ADR, filling its rooms by pricing keenly, or a lower occupancy at a high ADR, selling fewer rooms at a higher price. Neither pattern is automatically better. The right balance depends on the location, the season, the property's cost structure and the market it serves, and this calculator deliberately does not describe any ADR or occupancy figure as good or bad. What matters is how the two move together. If occupancy rises while ADR falls, the business may simply be discounting to fill rooms. If ADR rises while occupancy falls sharply, pricing may have moved ahead of demand. Reading the pair over the same periods, month by month and year on year, tells you far more than either figure does alone. The Hotel Occupancy Calculator works through the occupancy side of the picture in the same way this tool works through rate.

ADR and RevPAR

RevPAR — revenue per available room — brings ADR and occupancy together into a single figure. It measures room revenue against every room night that was available, whether or not it was sold. RevPAR = Room Revenue ÷ Available Room Nights, or equivalently RevPAR = ADR × Occupancy Rate. Because room revenue equals ADR multiplied by rooms sold, and occupancy equals rooms sold divided by available room nights, the two formulas give the same answer. Using the illustrative example above, £30,000 of revenue across 600 available room nights gives a RevPAR of £50, which is the same as an ADR of £125 multiplied by an occupancy of 40%. RevPAR is useful because it rewards neither volume nor price on its own. A property that fills every room at a heavy discount and a property that sells half its rooms at double the price can arrive at the same RevPAR, and a change that lifts ADR but costs more occupancy than it gains in rate will show up as a lower RevPAR. It is the figure most operators, buyers and lenders use to compare periods and, with care, to compare properties. This calculator returns RevPAR whenever you supply available rooms and the period alongside revenue and rooms sold.

Why Hotel ADR Matters

ADR is the clearest available measure of pricing performance, because it strips out how many rooms were sold and shows what each sale was worth. Tracked over time, it reveals whether room-rate changes are actually being achieved in the market or being given back through discounts, packages and channel promotions. Compared across seasons, it shows how much of the year's accommodation revenue depends on peak pricing and how far rates fall in quieter periods. Compared across booking periods — midweek against weekend, advance bookings against last-minute — it shows where pricing is strongest and where it is being left to chance. ADR also links pricing to accommodation revenue in a way that is easy to act on: every pound added to ADR is a pound of revenue on every room night sold, with almost no additional cost, which is why a modest rate improvement can matter more to profit than an equivalent gain in occupancy. The relationship between pricing and occupancy is the caution. A rate rise that reduces demand can lower total revenue even as ADR climbs. ADR shows what happened to price; it needs occupancy alongside it to show what happened to the business.

How Seasonality Affects ADR

Very few accommodation businesses achieve the same average rate all year, and a single annual ADR conceals the pattern that actually determines performance. Season is the most obvious driver: rates in a coastal town in August and in January can differ widely, and the annual average sits somewhere between the two without describing either. Weekends often achieve a different rate from midweek nights, especially in leisure locations, while the reverse can be true in business destinations. Public holidays, school holidays, local events, festivals and sporting fixtures create short periods of exceptional demand where the achieved rate can rise well above the norm. Destination demand more broadly — a new attraction, a change in travel patterns, a competitor opening or closing — shifts what the market will pay. Room type matters too, because a property that sells more of its premium rooms in one period than another will see its ADR move even if no individual rate changed. Booking lead time and length of stay both influence rate through advance-purchase and multi-night pricing. Because of all this, the most informative use of an ADR calculator is to run it for consistent, comparable periods and study how the figure changes. The Seasonal Pricing Planner turns those observations into a rate calendar.

ADR and Direct Bookings

Two bookings at the same headline room rate do not necessarily leave the business with the same amount of money. A booking made through an online travel agency or other third-party channel usually carries a commission, deducted from or invoiced against the room rate, while a booking made directly through the property's own website, by phone or by a returning guest normally does not — although it may have carried its own marketing cost. For that reason many operators look at ADR in two ways: the gross rate the guest paid, and the net rate after commission that the business actually retained. Both are legitimate, but they must not be mixed within a single calculation, and it is worth being clear which one your revenue figure represents before you divide. The channel mix therefore affects what a given ADR is worth. A property whose bookings arrive mostly through commission-charging channels retains less from the same ADR than one with a higher share of direct bookings. The Direct Booking Revenue Calculator estimates what shifting a proportion of bookings away from commission-charging channels could be worth, using your own booking volumes and commission rates.

Using ADR When Assessing a Hospitality Property

When reviewing an accommodation business for purchase or sale, ADR is one useful operating metric among several. For a buyer, a history of monthly ADR alongside occupancy shows whether the revenue in the accounts rests on sustained pricing or on a handful of exceptional periods, whether rates have held or drifted, and how the business behaves in its quietest months. For an owner preparing to sell, presenting clear ADR, occupancy and RevPAR figures by month makes the trading history easier for buyers and lenders to verify. ADR should never be read alone. It sits alongside occupancy, total revenue, operating costs, profit, seasonality, booking channels and the commission paid on them, the property's capacity and condition, and several years of historical accounts. A high ADR with weak occupancy, or a strong ADR that depends on a single event each year, tells a very different story from the same figure earned consistently. ADR does not determine what a property is worth; value depends on verified profit, tenure, condition, location and the multiple a buyer and lender will support. For the wider assessment, the AI Hospitality Property Valuation estimates an indicative value range, the AI Hospitality Property Investment Analyser tests whether a purchase works as an investment, the AI Hospitality Property Deal Analyser examines a specific asking price against the trading figures, the AI Hospitality Property Due Diligence Analyser organises the investigation before an offer, and the AI Hospitality Profit Predictor estimates what could be left after operating costs.

Related Stay4Hospitality Tools

This ADR calculator is one of a set of free hospitality tools designed to be used together. Want to measure how much of your available accommodation is being sold? Use the Hotel Occupancy Calculator to calculate occupancy from your available and occupied room nights. The AI Hospitality Revenue Optimisation Planner identifies where rate, occupancy and channel mix could realistically improve, the Revenue and Occupancy Forecast projects the combined effect month by month, and the Seasonal Pricing Planner builds a rate calendar from your seasons. The Direct Booking Revenue Calculator shows what a shift away from commission-charging channels could be worth. Buyers can continue with the Property Valuation, the Investment Analyser, the Deal Analyser, the Due Diligence Analyser and the Profit Predictor, then browse hospitality properties for sale. Owners considering selling a hotel, B&B, guest house or other suitable hospitality property can list their property on Stay4Hospitality and present it — with its ADR and occupancy history — directly to buyers and investors searching for hospitality businesses.

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