Calculating Average Room Rate

Calculate your hotel’s average daily rate (ADR) to optimize pricing strategy, maximize revenue, and stay competitive in your market.

Introduction & Importance of Calculating Average Room Rate

Understanding your average room rate is fundamental to hotel revenue management and strategic pricing decisions.

The Average Daily Rate (ADR) is one of the most critical key performance indicators (KPIs) in the hospitality industry. It represents the average rental income per paid occupied room in a given time period. ADR is calculated by dividing room revenue by the number of rooms sold, providing hoteliers with essential insights into their pricing strategy effectiveness.

Why does ADR matter so much? Because it directly impacts your hotel’s revenue and profitability. A well-calculated ADR helps you:

• Optimize pricing strategies to maximize revenue during peak and off-peak seasons
• Compare your performance against competitors in your market segment
• Identify pricing opportunities and potential revenue leaks
• Make data-driven decisions about discounts, promotions, and package deals
• Forecast future revenue more accurately based on historical ADR trends
• Evaluate the effectiveness of your distribution channel mix

According to a STR Global report, hotels that actively monitor and adjust their ADR based on market conditions achieve up to 15% higher revenue per available room (RevPAR) compared to those that don’t.

The relationship between ADR and occupancy rate is particularly important. While increasing ADR generally leads to higher revenue, it can sometimes result in lower occupancy if prices become too high for your target market. The optimal balance between ADR and occupancy is what revenue managers strive to achieve, often referred to as the “sweet spot” in hotel pricing.

This calculator provides more than just basic ADR computation. It also calculates Revenue Per Available Room (RevPAR), which combines both ADR and occupancy rate to give you a more comprehensive view of your hotel’s performance. RevPAR is calculated by multiplying ADR by occupancy rate, or alternatively by dividing total room revenue by total available rooms.

How to Use This Average Room Rate Calculator

Follow these step-by-step instructions to get the most accurate and actionable results from our calculator.

1. Enter Your Total Room Revenue

   Input the total revenue generated from room sales during your selected time period. This should be the gross revenue before any deductions or commissions. For example, if you’re calculating monthly ADR, enter the total revenue from all room bookings for that month.

2. Specify Total Rooms Sold

   Enter the number of rooms actually sold (occupied) during the same period. This should not include complimentary rooms or rooms used for house purposes. For instance, if you sold 250 rooms in a month, enter 250.

3. Select Time Period

   Choose whether you’re calculating daily, weekly, monthly, or yearly averages. This helps contextualize your results and makes comparisons more meaningful. Daily calculations are useful for tracking short-term fluctuations, while monthly or yearly calculations provide better big-picture insights.

4. Add Occupancy Rate (Optional but Recommended)

   If available, enter your occupancy rate as a percentage. This enables the calculator to compute RevPAR (Revenue Per Available Room), giving you a more comprehensive performance metric. If you don’t know your occupancy rate, you can calculate it by dividing rooms sold by total available rooms and multiplying by 100.

5. Click Calculate

   Press the “Calculate Average Room Rate” button to generate your results. The calculator will instantly display your ADR and RevPAR, along with a visual representation of your performance metrics.

6. Analyze Your Results

   Review the calculated ADR and RevPAR values. Compare them against your historical data and industry benchmarks. The visual chart helps you quickly understand your performance at a glance.

7. Adjust Your Strategy

   Use the insights gained to refine your pricing strategy. Consider factors like seasonality, local events, competitor pricing, and demand patterns when making adjustments.

Pro Tip:

For the most accurate results, calculate your ADR separately for different room types (standard, deluxe, suites) and market segments (leisure, business, group). This segmented approach reveals which areas are performing well and which may need pricing adjustments.

Formula & Methodology Behind the Calculator

Understanding the mathematical foundation ensures you can trust and properly interpret the results.

1. Average Daily Rate (ADR) Calculation

The fundamental formula for calculating ADR is:

ADR = Total Room Revenue / Number of Rooms Sold

Where:

• Total Room Revenue: The sum of all revenue generated from room sales during the period (excluding taxes and service charges in some calculations)
• Number of Rooms Sold: The count of rooms actually occupied by paying guests during the period

For example, if your hotel generated $50,000 in room revenue from 250 rooms sold in a month:

ADR = $50,000 / 250 = $200

2. Revenue Per Available Room (RevPAR) Calculation

RevPAR provides a more comprehensive performance metric by incorporating occupancy:

RevPAR = ADR × Occupancy Rate
       = (Total Room Revenue / Rooms Sold) × (Rooms Sold / Total Available Rooms)
       = Total Room Revenue / Total Available Rooms

Where:

• Occupancy Rate: The percentage of available rooms that were sold (Rooms Sold / Total Available Rooms)
• Total Available Rooms: The total number of rooms available for sale during the period

Continuing our example, if the hotel has 300 total rooms:

Occupancy Rate = 250 / 300 = 0.8333 or 83.33%
RevPAR = $200 × 0.8333 = $166.67
or
RevPAR = $50,000 / (300 × 30 days) = $55.56 (daily RevPAR)

3. Time Period Adjustments

The calculator automatically adjusts calculations based on your selected time period:

• Daily: Shows raw ADR for a single day
• Weekly: Divides total revenue by 7 to show average daily rate for the week
• Monthly: Typically divides by 30 (or actual days in month for precise calculations)
• Yearly: Divides by 365 to show average daily rate for the year

4. Data Validation & Edge Cases

Our calculator includes several validation checks:

• Prevents division by zero if no rooms were sold
• Handles partial occupancy rates (e.g., 75.5%)
• Validates that revenue and room counts are positive numbers
• Automatically formats currency values to 2 decimal places

For advanced users, it’s worth noting that some hotels calculate ADR including or excluding taxes and service charges. Our calculator assumes the revenue figure you enter is the amount you actually receive (net of any commissions paid to OTAs), which is the most common approach for internal revenue management purposes.

Real-World Examples & Case Studies

Practical applications of average room rate calculations in different hotel scenarios.

Case Study 1: Boutique City Hotel

Scenario: A 50-room boutique hotel in downtown Chicago wants to evaluate its pricing strategy for Q3 (July-September).

Month	Total Revenue	Rooms Sold	ADR	Occupancy %	RevPAR
July	$225,000	450	$500.00	90%	$450.00
August	$210,000	420	$500.00	84%	$420.00
September	$165,000	330	$500.00	66%	$330.00
Q3 Total	$600,000	1,200	$500.00	80%	$400.00

Analysis: The hotel maintained a consistent ADR of $500 across all months, but saw occupancy drop from 90% in July to 66% in September. This suggests that while their pricing was appropriate for peak summer demand, they may need to consider dynamic pricing or promotions to maintain occupancy in shoulder seasons. Their RevPAR dropped from $450 to $330, indicating a 27% decrease in revenue per available room.

Recommendation: Implement a tiered pricing strategy with slight discounts for September bookings made in advance, or create value-added packages to maintain both ADR and occupancy.

Case Study 2: Resort Property with Seasonal Demand

Scenario: A 200-room beach resort in Florida analyzing annual performance to prepare for next year’s budget.

Quarter	Total Revenue	Rooms Sold	ADR	Occupancy %	RevPAR
Q1 (Jan-Mar)	$1,200,000	3,000	$400.00	50%	$200.00
Q2 (Apr-Jun)	$1,800,000	4,500	$400.00	75%	$300.00
Q3 (Jul-Sep)	$3,600,000	7,200	$500.00	90%	$450.00
Q4 (Oct-Dec)	$1,500,000	3,750	$400.00	62.5%	$250.00
Annual	$8,100,000	18,450	$438.90	67.5%	$296.25

Analysis: The resort shows dramatic seasonality with Q3 (summer) generating 44% of annual revenue. Their ADR increases by 25% during peak season, but they maintain strong occupancy across all quarters. The annual RevPAR of $296.25 suggests good overall performance, but there’s opportunity to improve shoulder seasons.

Recommendation: Consider implementing a “winter escape” marketing campaign for Q1 to boost occupancy during the slowest period. The consistent ADR outside peak season suggests room to experiment with slight price increases in Q2 and Q4.

Case Study 3: Business Hotel with Midweek Demand

Scenario: A 150-room airport hotel analyzing weekly patterns to optimize pricing.

Day	Revenue	Rooms Sold	ADR	Occupancy %	RevPAR
Monday	$9,000	120	$75.00	80%	$60.00
Tuesday	$10,500	140	$75.00	93%	$69.75
Wednesday	$10,800	144	$75.00	96%	$72.00
Thursday	$9,900	132	$75.00	88%	$66.00
Friday	$6,000	80	$75.00	53%	$39.75
Saturday	$3,000	40	$75.00	27%	$20.25
Sunday	$3,300	44	$75.00	29%	$22.50
Weekly	$52,500	700	$75.00	67%	$50.29

Analysis: This hotel shows classic business travel patterns with strong midweek demand (80-96% occupancy) and very low weekend occupancy (27-29%). The consistent $75 ADR suggests a flat pricing strategy that doesn’t capitalize on demand variations.

Recommendation: Implement dynamic pricing with:

• Higher rates for Tuesday-Wednesday (could test $85-90 given 93-96% occupancy)
• Lower rates for weekends to attract leisure travelers (could test $60-65)
• Special weekend packages that include airport transfers or breakfast

Industry Data & Comparative Statistics

Benchmark your performance against industry standards and competitors.

Average Room Rates by Hotel Class (2023 Data)

Hotel Class	Average ADR (US)	Occupancy Rate	RevPAR (US)	Typical Amenities
Luxury	$350-$700+	70-80%	$250-$560	Full-service, fine dining, spa, concierge
Upper Upscale	$200-$350	75-85%	$150-$300	Full-service, restaurant, fitness center
Upscale	$150-$200	70-80%	$105-$160	Limited service, breakfast included
Upper Midscale	$100-$150	65-75%	$65-$112	Basic amenities, may include breakfast
Midscale	$75-$100	60-70%	$45-$70	Budget-friendly, minimal amenities
Economy	$50-$75	55-65%	$27-$49	Basic accommodations, limited services

Source: STR Global Hotel Industry Report 2023

ADR Trends by Region (2022-2023 Comparison)

Region	2022 ADR	2023 ADR	YoY Change	2023 Occupancy	2023 RevPAR
North America	$165.23	$178.45	+7.9%	65.4%	$116.72
Europe	€132.80	€145.67	+9.7%	72.3%	€105.43
Asia Pacific	$112.50	$124.80	+10.9%	68.2%	$85.19
Middle East	$185.30	$198.75	+7.3%	70.1%	$139.32
Latin America	$98.45	$106.50	+8.2%	62.8%	$66.91
Global Average	$138.67	$150.23	+8.3%	67.5%	$101.40

Source: UNWTO World Tourism Barometer

Key Takeaways from Industry Data

1. Post-pandemic recovery continues: Global ADR increased by 8.3% from 2022 to 2023, outpacing inflation in most regions, indicating strong demand and successful revenue management strategies.
2. Asia Pacific leads growth: With an 10.9% ADR increase, this region shows the strongest recovery, likely due to reopened borders and pent-up travel demand.
3. Occupancy still below pre-pandemic: While ADR has recovered and grown, occupancy rates remain about 5-10% below 2019 levels in most regions, suggesting room for growth.
4. Luxury outperforms: High-end hotels have seen the most significant ADR growth, with some markets achieving 20-30% increases over 2019 levels.
5. RevPAR tells the full story: While ADR growth is impressive, RevPAR growth has been more modest (typically 5-7%), highlighting the importance of balancing rate and occupancy.

For the most current data, consult the U.S. Bureau of Labor Statistics or your local tourism authority’s reports. Remember that these averages can vary significantly by specific location, property type, and season.

Expert Tips for Optimizing Your Average Room Rate

Practical strategies from revenue management professionals to maximize your ADR and RevPAR.

Pricing Strategy Tips

1. Implement dynamic pricing

   Use revenue management software to adjust prices in real-time based on demand, booking pace, and market conditions. Hotels using dynamic pricing typically see 10-25% RevPAR improvements.

2. Segment your rates

   Create different rate categories for:

   • Advance purchase (non-refundable)
   • Flexible/cancelable rates
   • Corporate/negotiated rates
   • Package deals (romance, family, etc.)
   • Last-minute/book-direct discounts

3. Monitor your comp set

   Regularly check rates at 3-5 direct competitors. Aim to be within 10-15% of the market average unless you have clear differentiation. Tools like STR or OTA insights can automate this process.

4. Leverage length-of-stay controls

   Encourage longer stays during low-demand periods by offering discounts for 3+ night stays. Conversely, implement minimum stay requirements during peak periods.

5. Use stay restrictions wisely

   Close lower-rate categories during high-demand periods to protect your ADR. For example, close advance purchase rates 30 days before arrival when demand is strong.

Operational Tips

• Train your staff on revenue culture

  Ensure all team members understand how their roles impact revenue. Front desk agents should be empowered to upsell and recognize revenue opportunities.

• Optimize your distribution mix

  Aim for 30-40% direct bookings (highest margin), 40-50% OTA bookings, and 10-20% from other channels. Direct bookings typically have 15-25% higher ADR after accounting for OTA commissions.

• Implement upselling strategies

  Train staff to upsell room categories, early check-in, late check-out, and ancillary services. Even a 5% upsell rate can increase RevPAR by 2-3%.

• Manage overbooking carefully

  Use historical no-show data to determine optimal overbooking levels. Typical overbooking ranges from 1-5% depending on your cancellation policy and market segment.

• Analyze cancellation patterns

  Track when and why guests cancel. If you see many last-minute cancellations for certain rate types, consider implementing non-refundable options or cancellation fees.

Technology Tips

1. Invest in a property management system (PMS) with revenue management capabilities

   Modern cloud-based PMS solutions like Cloudbeds or Operto can automate pricing decisions and provide valuable insights.

2. Use channel management software

   Tools like SiteMinder or Duetto help manage rates and inventory across all distribution channels from a single interface, reducing errors and saving time.

3. Implement a business intelligence tool

   Solutions like STR or Duetto provide competitive benchmarking and market insights.

4. Set up automated reports

   Configure daily/weekly reports for:

   • ADR by segment
   • Occupancy forecasts
   • Booking pace comparisons
   • Channel performance
   • Cancellation trends

5. Use reputation management tools

   Platforms like ReviewPro or TrustYou help monitor guest sentiment, which can impact your ability to command premium rates. Hotels with 4.5+ ratings can typically charge 10-20% more than competitors with lower ratings.

Marketing Tips

• Create value-added packages

  Bundle rooms with experiences (spa credits, dining, local attractions) to justify higher rates. Packages typically achieve 15-25% higher ADR than room-only bookings.

• Develop a loyalty program

  Repeat guests typically spend 20-40% more than first-time guests. Offer exclusive rates or upgrades to loyalty members to encourage direct bookings.

• Leverage user-generated content

  Encourage guests to share photos and reviews. Hotels with abundant UGC can command 5-10% higher rates due to increased trust and social proof.

• Implement a direct booking strategy

  Offer perks like free Wi-Fi, breakfast, or room upgrades for direct bookings. This can reduce OTA dependency and increase ADR by 10-20%.

• Use meta search advertising

  Platforms like Google Hotel Ads and TripAdvisor allow you to bid for visibility when potential guests are comparing rates, helping you capture higher-value bookings.

Interactive FAQ: Common Questions About Average Room Rate

What’s the difference between ADR and RevPAR?

While both are crucial hotel performance metrics, they measure different aspects:

• ADR (Average Daily Rate): Measures the average price paid for occupied rooms. Formula: Total Room Revenue / Rooms Sold
• RevPAR (Revenue Per Available Room): Measures revenue generation efficiency by considering all available rooms. Formula: ADR × Occupancy Rate or Total Room Revenue / Total Available Rooms

Example: A hotel with $10,000 revenue from 50 rooms sold (out of 100 available) has:

• ADR = $10,000 / 50 = $200
• RevPAR = $200 × 50% = $100 or $10,000 / 100 = $100

ADR tells you about pricing power, while RevPAR shows how effectively you’re filling rooms at profitable rates.

How often should I calculate my average room rate?

The frequency depends on your hotel’s size and market dynamics:

• Daily: Large hotels (100+ rooms) or those in highly dynamic markets should monitor ADR daily to make real-time pricing adjustments.
• Weekly: Most mid-sized hotels (50-100 rooms) benefit from weekly ADR reviews to spot trends and adjust strategies.
• Monthly: Small hotels (under 50 rooms) or those in stable markets can typically review ADR monthly, with more frequent checks during peak seasons.
• Special Events: Always calculate ADR before, during, and after major local events to understand demand impacts.

Best practice: Calculate ADR at least weekly, and always:

• After implementing price changes
• Following major local events
• When occupancy patterns shift unexpectedly
• Before budgeting or forecasting periods

Should I include taxes and fees in my ADR calculation?

This depends on your specific needs and industry standards:

• Excluding taxes/fees (Net ADR):
  • Most common approach for internal revenue management
  • Allows for cleaner comparisons with competitors
  • Better reflects your actual revenue per room
  • Used in most industry benchmarks and reports
• Including taxes/fees (Gross ADR):
  • Represents what guests actually pay
  • Useful for marketing and guest-facing communications
  • Required for some financial reporting purposes
  • Can vary significantly by location due to different tax rates

Our recommendation: Use net ADR (excluding taxes/fees) for revenue management decisions and internal benchmarking. Only include taxes when communicating rates to potential guests or for specific financial reporting requirements.

Note: Some markets (like Europe) often quote rates including VAT, while others (like the US) typically quote pre-tax rates. Always clarify which method you’re using when comparing with competitors.

How does seasonality affect my average room rate?

Seasonality has a profound impact on ADR through several mechanisms:

1. Demand fluctuations

   High season (peak demand) allows for higher ADR, while low season often requires lower rates to maintain occupancy. The difference between peak and off-peak ADR can range from 20% to over 100% in highly seasonal markets.

2. Competitor pricing

   Competitors adjust rates seasonally, creating market rate ceilings and floors. Your ADR should generally move in sync with the market, though premium properties can command higher seasonal premiums.

3. Event-driven demand

   Local events (conventions, festivals, sports) create temporary demand spikes that can significantly boost ADR. Hotels near major event venues often see 2-3x normal ADR during these periods.

4. Length of stay patterns

   Seasonal visitors often have different stay patterns (e.g., weekend vs. weekday), which can affect your optimal pricing strategy and minimum stay requirements.

5. Operating costs

   Seasonal variations in utility costs, staffing needs, and maintenance can affect your ability to offer competitive rates while maintaining profitability.

Seasonal ADR Strategy Tips:

• Create a 12-month pricing calendar based on historical data
• Implement “shoulder season” rates between peak and off-peak
• Offer value-added packages during low seasons to maintain ADR
• Use dynamic pricing tools to automate seasonal adjustments
• Analyze booking windows – some seasons may allow for later pricing increases

What’s a good average room rate for my hotel?

“Good” is relative and depends on several factors. Here’s how to determine what’s right for your property:

1. Compare to your comp set

   Aim to be within ±10% of your direct competitors’ ADR unless you have clear differentiation (better location, amenities, or service).

2. Consider your star rating

   Use industry benchmarks for your hotel class (see our data tables above). As a general rule:

   • Luxury: $350+ ADR
   • Upper Upscale: $200-$350
   • Upscale: $150-$200
   • Midscale: $100-$150
   • Economy: $50-$100

3. Evaluate your RevPAR

   A good ADR should translate to strong RevPAR. Compare your RevPAR to industry averages for your market and property type.

4. Assess profitability

   Your ADR should cover costs and leave adequate profit. A common rule of thumb:

   • ADR should be at least 3-5x your variable cost per room
   • After fixed costs, aim for 25-40% gross operating profit

5. Consider your occupancy

   There’s typically a trade-off between ADR and occupancy. A good ADR is one that balances rate with occupancy to maximize RevPAR. If your occupancy is:

   • Below 50%: Focus on increasing occupancy, even if it means lowering ADR slightly
   • 50-75%: Optimize the balance between rate and occupancy
   • Above 85%: Consider increasing ADR, as demand is strong

6. Track your ADR Index

   Calculate your ADR as a percentage of your comp set’s average ADR. An index of:

   • 100 = matching the market
   • 110+ = premium positioning
   • Below 90 = potential underpricing

Red Flags that may indicate your ADR needs adjustment:

• Consistently low occupancy with high ADR
• High occupancy but low RevPAR (suggests ADR is too low)
• Declining market share despite stable ADR
• Guest complaints about value for price

How can I increase my average room rate without losing guests?

Increasing ADR requires a strategic approach to maintain occupancy and guest satisfaction:

1. Improve perceived value

   Before raising rates, enhance what guests receive:

   • Upgrade room amenities (better bedding, smart TVs)
   • Improve service quality (faster check-in, personalized touches)
   • Add complimentary perks (Wi-Fi, breakfast, local shuttle)
   • Enhance public spaces (lobby, pool area, fitness center)

2. Implement tiered pricing

   Create rate fences that allow different prices for different guest segments:

   • Advance purchase (lower rate, non-refundable)
   • Flexible rate (higher price, cancelable)
   • Last-minute rate (premium for urgent bookings)
   • Package rates (higher ADR with added value)

3. Use dynamic pricing

   Adjust rates based on:

   • Demand forecasts (increase when occupancy reaches 80%)
   • Booking pace (higher rates for late bookings)
   • Length of stay (discounts for longer stays in low season)
   • Day of week (higher rates for peak nights)

4. Create scarcity

   Psychological techniques to justify higher rates:

   • “Only 2 rooms left at this price”
   • Limited-time offers with countdown timers
   • Exclusive “members-only” rates
   • Minimum stay requirements during peak periods

5. Enhance your direct booking channel

   Direct bookings typically support higher ADR:

   • Offer direct booking perks (free upgrades, late checkout)
   • Improve your website’s booking engine
   • Implement a loyalty program with exclusive rates
   • Use meta search advertising to capture high-intent guests

6. Upsell strategically

   Increase revenue per guest without raising base rates:

   • Room upgrades (e.g., $20 for a better view)
   • Early check-in/late check-out fees
   • Ancillary services (spa, dining, experiences)
   • Package deals that bundle rooms with high-margin services

7. Improve your online reputation

   Hotels with higher review scores can command premium rates:

   • Respond to all reviews (positive and negative)
   • Encourage happy guests to leave reviews
   • Address service issues promptly
   • Showcase guest testimonials on your website

8. Test price increases gradually

   Implement small (3-5%) increases and monitor impact:

   • Start with your most in-demand room types
   • Increase during peak periods first
   • Offer grandfathered rates to repeat guests
   • Monitor cancellation rates and guest feedback

Pro Tip: When increasing rates, communicate the value guests receive. For example: “We’ve upgraded our mattresses and added smart TVs to all rooms, which is why we’ve adjusted our rates to reflect these improvements.”

What common mistakes should I avoid when calculating ADR?

Avoid these pitfalls to ensure accurate and actionable ADR calculations:

1. Including non-room revenue

   ADR should only include revenue from room sales. Exclude:

   • Food and beverage revenue
   • Spa or activity revenue
   • Parking or resort fees (unless bundled as mandatory)
   • Cancellation fees or no-show charges

2. Counting complimentary rooms

   Only include paid occupied rooms in your count. Exclude:

   • Complimentary rooms (comp rooms)
   • House use or staff rooms
   • Rooms out of order
   • Rooms used for promotional stays

3. Ignoring room type differences

   Calculating one ADR for all room types masks important insights. Instead:

   • Calculate ADR separately for each room category
   • Track upgrades and downgrades
   • Analyze which room types perform best

4. Using inconsistent time periods

   Avoid comparing:

   • Different day counts (e.g., February vs. March)
   • Peak vs. off-peak periods without adjustment
   • Weekdays vs. weekends without segmentation

5. Not accounting for inflation

   When comparing year-over-year ADR:

   • Adjust for inflation to see real growth
   • Compare to local economic indicators
   • Consider currency fluctuations for international comparisons

6. Overlooking distribution costs

   Remember that OTA commissions (typically 15-25%) affect your net revenue. When setting ADR:

   • Calculate net ADR after commissions for OTA bookings
   • Compare net ADR across channels
   • Factor in payment processing fees (2-4%)

7. Not segmenting by market

   Different guest segments have different price sensitivities. Track ADR separately for:

   • Leisure travelers
   • Business travelers
   • Group bookings
   • Corporate negotiated rates
   • OTA bookings vs. direct bookings

8. Ignoring cancellation patterns

   High cancellation rates can distort ADR. Consider:

   • Tracking ADR for actual stayed rooms vs. booked rooms
   • Implementing non-refundable rates for high-demand periods
   • Charging cancellation fees to protect revenue

9. Not benchmarking properly

   When comparing to competitors:

   • Use like-for-like comparisons (same star rating, location, amenities)
   • Adjust for seasonal differences
   • Consider occupancy differences (high ADR with low occupancy may not be optimal)

10. Focusing only on ADR

    ADR is just one metric. Always consider:

    • RevPAR (combines ADR and occupancy)
    • GOPPAR (Gross Operating Profit Per Available Room)
    • TRevPAR (Total Revenue Per Available Room, including all departments)
    • Guest satisfaction scores

Best Practice: Document your ADR calculation methodology and apply it consistently. This ensures accurate trend analysis over time and meaningful comparisons with industry benchmarks.