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ADR (average daily rate)

ADR (average daily rate) is the average price of a night sold: the night revenue for a period divided by the number of nights booked.

ADR, for average daily rate, is the hotel industry's measure of the average price per night sold. It answers a simple question: when your property is booked, how much does one night bring in on average?

Formula: ADR = night revenue ÷ nights sold. It usually counts only the price of the nights, excluding cleaning fees and the tourist tax, which does not belong to the host. Choose your convention, before or after platform fees, and keep it from one month to the next.

Hypothetical example: in November, 18 nights sold bring in 13,500 MAD of night revenue. The ADR is 13,500 ÷ 18 = 750 MAD.

Why it is not enough

ADR ignores empty nights: lowering your prices can push it down while filling the calendar better. Read it with the occupancy rate; the two combine in RevPAR: ADR × occupancy rate. RentDari's analytics give the average price by property and by period. Our guide to short-term rental profitability in Morocco shows how ADR and occupancy weigh on yield.

More terms from the glossary

The whole glossary

  • Channel manager

    A channel manager is the software that keeps a single calendar and a single price grid for all your sales channels, such as Airbnb, Booking.com and Expedia, and syncs them automatically.

  • Double booking (overbooking)

    A double booking, or overbooking, happens when the same night at the same property is sold twice, usually on two platforms whose calendars do not sync in time.

  • iCal

    iCal is a calendar format (.ics) that booking platforms publish and read from each other to share busy dates, without prices or guest data.