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ADR per Key

Average Daily Rate per Key

Updated over 2 years ago

The average rental income per paid occupied room.

The average daily rate (ADR) is the average daily rate of a hotel is the average rental income per paid occupied room in a specific time period. It is useful to compare the hotel’s performance with other hotels, or against their own historical performance, allowing them to make changes to their revenue management. As a metric, ADR is not concerned with revenue earned in other areas of the hotel.

How this is used

The ADR per key is a user assumption that will be used to calculate the NOI for all the associated hotel rooms through factoring in occupancy rate, number of rooms, and Opex for the period of a year.

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