Average Daily Rate (commonly referred to as ADR) is a statistical unit that is often used in the lodging industry.
The number represents the average rental income per paid occupied room in a given time period.
One should combine ADR, occupancy and RevPAR (revenue per available room) to make a sound judgment on hotel performance.
ADR can vary significantly due to external factors like seasonal demand, local events, or economic conditions.
Understanding these variables can help hotel management make more informed pricing decisions.