Hotel ADR Calculator (Average Daily Rate)

This ADR calculator finds your average daily rate from room revenue and rooms sold. It is free, runs in your browser, and your numbers are not sent or stored. Enter your figures, and the ADR and ARI update as you type.

Enter your figures

Revenue from guestroom rentals for the period.

Count paid rooms only. The STR definition of rooms sold excludes complimentary rooms.

Same period. Adds the Average Rate Index (ARI).

Runs in your browser. The numbers you type are not sent or stored.

Result

Enter room revenue and rooms sold to see your ADR, with the formula worked out using your numbers.

What is ADR in a hotel

ADR stands for average daily rate. STR (CoStar) defines it as "a measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold." The formula is ADR = Room revenue ÷ Rooms sold.

ADR isolates pricing. It tells you what a sold room earned on average and ignores the rooms that stayed empty. That is the difference between ADR and RevPAR: ADR divides by rooms sold, while RevPAR divides by rooms available, so RevPAR also reflects occupancy.

STR's rooms sold definition excludes complimentary rooms, so only paid room-nights belong in the denominator. Only room revenue belongs in the numerator: food, spa, parking and other operating income sit outside ADR and belong under total revenue instead.

How to calculate ADR with the calculator

  1. Choose a currency (EUR, USD or GBP) from the select at the top. This only changes the symbol shown in the result.
  2. Enter Room revenue for the period and Rooms sold. The helper text under Rooms sold reminds you to count paid rooms only. Following STR's definition, complimentary rooms are excluded from rooms sold.
  3. If you want to compare against your comp set, add a Competitive set ADR. This adds the Average Rate Index (ARI) to the result. Leave the field blank if you do not have that figure.
  4. Read the result next to the form (below it on a phone). Numbers update as you type once the required fields are valid. Press "Calculate" to highlight missing or invalid fields, "Try an example" to load sample data, or "Clear" to reset every field.

You can type numbers with or without thousands separators, using either a decimal point or a decimal comma.

Hotel ADR calculation example

Example with illustrative numbers: room revenue is €18,400 for the period, and rooms sold is 160. ADR = €18,400 ÷ 160 = €115.00.

Suppose the competitive set reported an ADR of €125.00. Your Average Rate Index (ARI) = (€115.00 ÷ €125.00) × 100 = 92.0. Because this sits below 100, it means, in STR's wording, less than the expected share of the aggregated group's ADR performance.

Now suppose 8 complimentary rooms were mistakenly included in rooms sold, pushing the count to 168. ADR would drop to €18,400 ÷ 168 = €109.52, understating your true average rate. Following STR's definition, which excludes complimentary rooms from rooms sold, avoids this.

How to read your ADR result

The result always shows ADR with the formula written out using your own figures, so you can trace the arithmetic. If you filled in a competitive set ADR, the calculator also shows your Average Rate Index (ARI), together with a short note saying whether it is above, at or below 100.

An ARI of 100 means, in STR's terms, you capture exactly your expected share of the group's ADR. A value above 100 means your average rate sits higher than the comp set aggregate; a value below 100 means it sits lower. The further the index moves from 100, the wider the gap.

To judge your own ADR over time, compare the same period year over year, watch the trend against your budget, and read the ARI alongside occupancy. A high ADR paired with weak occupancy can still leave revenue on the table, so read ADR together with occupancy.

Common ADR calculation mistakes

  • Counting complimentary rooms as sold: STR's rooms sold definition excludes complimentary rooms. Adding them to the denominator understates your ADR, because the same room revenue is spread across more room-nights.
  • Mixing room revenue with total revenue: ADR uses only room revenue. Adding food and beverage, spa or parking income inflates the number and turns ADR into a mixed figure that no longer matches the STR definition.
  • Ignoring empty rooms: ADR says nothing about how many rooms stayed unsold. A high ADR with low occupancy can still miss budget. Read ADR alongside occupancy, or use RevPAR.
  • Switching revenue conventions midway: STR's glossary refers to its Data Reporting Guidelines for the detailed treatment of room revenue. If you report to STR, check those guidelines; whichever convention you follow, apply it consistently to every period.
  • Comparing unlike periods: a slow shoulder month and a peak week can produce very different ADRs. Compare like with like, such as the same month last year, or track ADR by day of week and by segment to see where the mix moved.

Frequently asked questions

How do you calculate ADR for a hotel?

Divide your room revenue by the number of rooms sold in the same period. ADR = Room revenue ÷ Rooms sold. In STR's definition, rooms sold excludes complimentary rooms, so count paid room-nights only. Only room revenue belongs in the numerator, so food, spa and parking income stay out.

What is ADR in a hotel?

ADR stands for average daily rate. It measures the average price a hotel earned per room sold in a given period. STR defines it as room revenue divided by rooms sold. A booking of two nights at the same rate counts as two room-nights sold. ADR does not tell you how full the hotel was; occupancy and RevPAR do.

What does ADR stand for in the hotel business?

ADR stands for average daily rate. The STR glossary defines it as a measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold. Read it together with occupancy and RevPAR, because ADR alone does not show how many rooms stayed empty.

What is the difference between RevPAR and ADR?

ADR divides room revenue by rooms sold, so it reflects pricing only. RevPAR divides room revenue by rooms available, so it also reflects occupancy. The link between them is RevPAR = ADR × Occupancy. ADR can look strong while RevPAR looks weak if many rooms sit empty, so track both.

How do you calculate ADR index?

Divide your hotel's ADR by the aggregated ADR of your competitive set, then multiply by 100. The result is the Average Rate Index, or ARI. A value of 100 means you capture exactly the expected share of the group's ADR. Above 100, your average rate outperforms the set; below 100, it trails.

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Sources

  1. Average Daily Rate (ADR)

    A measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold.

    ADR = Room Revenue/Rooms Sold

  2. Revenue (room revenue)

    Room revenue generated from the guestroom rentals or sales. Refer to Data Reporting Guidelines for more specific application.

  3. Rooms sold

    The number of rooms sold in a specified time period (excludes complimentary rooms). Refer to Data Reporting Guidelines for more specific application. See: Demand, Room Demand.

  4. Average Rate Index (ARI)

    If all things are equal, a property's ARI is expected to be 100, compared to the aggregate group of hotels. Historically, this is described as "fair share."

    To calculate an ARI: (Subject hotel ADR/Aggregated group of hotels' ADR) x 100 = ARI

Definitions quoted verbatim from the STR (CoStar) Glossary, str.com/data-insights/resources/glossary, as archived on 9 August 2025 (archived copy). The worked example and the Try an example figures are illustrative numbers, not data about any hotel.

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