ADR formula
ADR = Room revenue ÷ Room nights sold
Worked example
A 40-room hotel sells 30 rooms on Tuesday night for a total room revenue of $2,400.
| Figure | Value |
|---|---|
| Rooms available | 40 |
| Room nights sold | 30 |
| Room revenue | $2,400 |
| ADR | $2,400 ÷ 30 = $80 |
The same hotel's occupancy rate that night is 75% and its RevPAR is $60.
What goes into ADR
- Include room revenue only: the nightly rate after discounts.
- Exclude taxes and service charge, food and beverage, minibar, laundry and other folio charges.
- Decide once how to treat complimentary and house-use rooms (most hotels leave them out of both revenue and room nights sold) and apply the rule every period, so ADR stays comparable month to month.
ADR vs RevPAR
ADR can rise while the hotel earns less: selling 10 rooms at $120 gives a higher ADR than 30 rooms at $80, but far less revenue. That is why revenue managers pair ADR with occupancy, or look at RevPAR, which combines both.
How bedsKey reports ADR
The bedsKey Reports & Analytics module shows occupancy %, ADR, RevPAR and room nights by day, week, month or a custom range, with month-to-date figures next to the same period last year and ADR on the books in the forecast and pickup report. Reports export to CSV. Because room charges are posted by the night audit in exact decimal arithmetic, the revenue behind ADR is not affected by floating-point rounding.