Average Daily Rate (ADR) Calculator

Calculate your hotel’s profit insights with the ADR formula. Get insight into how well your hotel’s pricing strategy performs with the average daily rate.

Calculate your Hotel’s ADR

What is ADR and Why It Matters?

The Average Daily Rate (ADR) is a core performance metric used by hotels to measure the average revenue earned per sold room. It provides essential insight into how well your pricing strategy is performing, highlighting the real value guests are paying when they book.

The ADR formula is calculated this way:

ADR = Total Room Revenue / Total Rooms Sold

This formula focuses exclusively on rooms that were actually sold, giving you an accurate picture of your pricing effectiveness, not just availability.

Why ADR Matters for Hoteliers

  • Track pricing performance over time
  • Benchmark against competitors in your market
  • Refine revenue management strategies
  • Identify high-performing dates and seasons

    • While ADR gives you a strong sense of pricing success, remember it doesn’t factor in unsold rooms. Combine ADR with RevPAR (Revenue Per Available Room) for a more complete view.

Calculate ADR

How Our ADR Calculator Works

HotelSmarters helps hoteliers grow smarter through data-driven tools, insights, and strategies. At HotelSmarters, we’ve designed the ADR Calculator to be fast, intuitive, and reliable for hotel owners, revenue managers, and hospitality consultants.

No spreadsheets. No guesswork. Just enter your Total Room Revenue and Number of Rooms Sold, and let our tool do the math.

  • •Simple, fast, and accurate

  • •Perfect for hotel owners, revenue managers, and hospitality consultants

  • •Optimized for mobile and desktop use

Benefits of Optimizing ADR

Improving your Average Daily Rate (ADR) is one of the most effective ways to increase hotel revenue, without relying solely on increasing occupancy.

Here’s how optimizing ADR benefits your business:

Boosts Revenue Without Additional Costs

Selling rooms at a higher average rate improves profit margins without adding operational strain. Just more income from the same resources.

Enhances Overall Profitability

Higher ADR contributes directly to better Gross Operating Profit (GOP), enabling reinvestment in service quality, technology, and growth.

Strengthens Market Positioning

A strong ADR signals that your hotel is perceived as premium or in-demand, helping you attract higher-paying guests and outshine competitors.

Supports Smarter Forecasting & Budgeting

With a solid ADR baseline, you can better predict revenue trends, set more accurate budgets, and plan marketing or seasonal offers with confidence.

Improves Your RevPAR When Paired with Occupancy

ADR is one-half of the RevPAR (Revenue Per Available Room) formula. By increasing ADR, you're automatically improving one of the most powerful metrics in hotel revenue management.

Drives Strategic Pricing Decisions

An optimized ADR helps you identify ideal price points, profitable booking channels, and the real value of guest segments, powering smarter, data-backed pricing strategies.

Optimizing ADR isn’t just about raising prices—it’s about capturing more value per room night through precision pricing, more intelligent segmentation, and dynamic market responses. And that’s exactly what HotelSmarters helps you achieve.

About HotelSmarters

HotelSmarters is a next-generation platform built to help hospitality professionals optimize revenue, enhance performance, and grow smarter.

We’re not just a toolkit—we’re your strategic partner in modern hotel management. From independent properties to multi-property portfolios, HotelSmarters equips you with real-time insights, intelligent automation, and powerful benchmarking tools to make better business decisions—faster.

Who We Serve

  • •Boutique hotels

  • •Mid-size and upscale properties

  • •Resorts & lodges

  • •Hotel groups & management companies

What We Offer

  • •Smart guest journey solutions

  • •Revenue optimization tools

  • •OTA performance monitoring

  • •Guest experience software

  • •Custom analytics dashboards

  • •Multi-property visibility

Our mission is to empower hoteliers with smarter, simpler, and scalable technology that drives profitability and long-term growth.

Whether you’re improving ADR, fine-tuning RevPAR, or enhancing your guest value, HotelSmarters helps you turn complex data into clear, actionable strategies. Because in today’s market, smarter hotels win.

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Frequently Asked Questions

ADR, or Average Daily Rate, measures the average price guests pay for sold rooms, excluding unsold rooms. It’s a critical metric for understanding how your pricing strategy is performing.

Focusing on ADR helps maximize revenue per guest. When optimized, it indicates that you're successfully positioning your property to attract higher-paying guests, crucial for profitability in both high and low occupancy periods.

HotelSmarters provides tools like smart room management, interactive TV solutions, and hotel middleware that help you transform guest experience. These tools empower you to adjust quickly to market shifts, ensuring you never leave revenue on the table.

Absolutely. Whether you manage a boutique hotel, a resort, or a multi-property chain, our platform scales to your needs and adapts to your specific business model and guest demographics.