Hotels & assets
ADR (Average Daily Rate)
Room revenue divided by rooms SOLD — the average price actually achieved per occupied room. Unlike RevPAR, it says nothing about how many rooms were empty.
ADR and occupancy are the two components of RevPAR, and separating them is the most useful thing you can do with a revenue number. A RevPAR miss driven by occupancy is a demand story; a RevPAR miss driven by ADR is a pricing story. They call for different responses, and the blended number supports neither.
It is also the number that quantifies an out-of-order room: every night a room is out of inventory costs roughly one ADR of revenue that will never be recovered.
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