ADR Full Form in Hotel is Average Daily Rate. A hotel’s “average daily rate” (ADR) is the amount of money it makes per day, on average, from its occupied rooms. Calculating your property’s (ADR) can provide you an idea of how much money guests are likely to spend throughout their stay. The average nightly rate at a hotel include the best available rate (BAR), reduced rate (RR), group rate (GR), and all other rate types.
This data gives revenue managers an idea of what to expect in terms of pricing on different days of the week, different months, and different seasons. Hotels may boost their ADR, revenue, and profits by keeping track of the metric, keeping an eye on rate swings, and establishing rate goals along with the ADR in mind.
The procedure of establishing ADR is actually quite easy. The ADR of a hotel can be determined by taking the revenue from a single night’s room sales and dividing it by the total number of rooms booked for that night. It’s worth emphasizing those unusable rooms, free rooms, and rooms used by overnight employees are not counted in the total number of rooms sold. The entire number of hotel rooms is also not included.