Glossary

ADR (Average daily rate)

ADR (average daily rate) is the average price paid per booked night: room revenue divided by nights booked. It counts only nights that sold, so it says nothing about empty nights. Operators read ADR with occupancy rate, or combine the two as RevPAR, to judge whether a short-term rental will cover its rent.

Formula

ADR = room revenue ÷ nights booked

Example

A unit earning $4,950 over 30 booked nights has an ADR of $165.

Related terms

Run the numbers yourself with the free rental arbitrage calculator.