What Is ADR?
ADR in hotels, short for average daily rate, is the average price paid for each room sold over a period. It is room revenue divided by rooms sold. Along with occupancy and RevPAR, it is one of the three key measures of how a hotel is performing.
Last updated: October 2026
How ADR in hotels works
The ADR formula works the same way in any currency: a large US hotel that sold 125 rooms last night for US$15,000 of room revenue had an ADR of US$120 (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It). Choice Hotels reports ADR on the same basis in its quarterly results (Choice Hotels International Reports First Quarter 2026 Results).
Both sides of the division follow rules. For hotels reporting to STR, the Uniform System of Accounts for the Lodging Industry (USALI) says rooms sold includes only rooms that earned revenue or were occupied under a promotion or contract, so other complimentary rooms stay out. Room revenue includes only income from renting guestrooms (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It). Every paid rate type counts toward ADR, including the best available rate (BAR), corporate, promotional and discounted group rates (Hotel ADR: A Quick Guide to Your Average Daily Rate (Cvent, on Hospitality Net)).
ADR varies by room type, day of week and market, and it shifts through the year with seasonal demand, special events and the wider economy (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It). Across US hotels in 2025, ADR rose 0.9% to US$160.54, even as occupancy fell to 62.3% and RevPAR fell to US$100.02. Those were the first full-year declines in occupancy and RevPAR since 2020. New York City had the highest ADR of the Top 25 US markets at US$333.71, and Las Vegas had the largest drop, down 4.3% to US$199.79 (CoStar, U.S. hotels report first full-year occupancy, RevPAR declines since 2020).
Why ADR matters for hotel distribution
ADR is central to hotel benchmarking because it ties directly to demand, to guest types and their price points, to the channels that distribute rooms and to room promotions (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It). Park Hotels & Resorts, a hotel REIT, uses ADR to judge the prices it achieves by type of customer, and reports that rate changes have a bigger effect on its overall revenue and incremental profit than changes in occupancy (Park Hotels & Resorts Reports Second Quarter 2025 Results).
The mix of business behind the average is where distribution choices show up. If spring Mondays and Tuesdays already draw enough transient demand to sell out, taking a lower-priced group too early can displace higher-paying guests and bring ADR down without any gain in occupancy (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It).
Airbnb reports ADR as Gross Booking Value per night and experience booked (Airbnb Q1 2025 Shareholder Letter). That Gross Booking Value includes host earnings, service fees, cleaning fees and taxes, so Airbnb's ADR does not line up one for one with a hotel ADR built from room revenue (Airbnb Form 10-K for fiscal year 2024). On that basis, Airbnb's ADR was US$168 in Q4 2025, up 6% year over year, or 3% excluding currency effects (Airbnb Q4 2025 Shareholder Letter).
AirDNA's short-term rental ADR divides total revenue by booked nights over the past 12 months, with the host's cleaning fee included and Airbnb service fees left out. A rental booked for 5 nights at $250 a night with a $200 cleaning fee has an ADR of $290 under that method. AirDNA keeps ADR separate from Price, the nightly rate a host asks, and a rental's ADR can climb month over month while occupancy drops and total revenue falls (AirDNA Help Center, How does AirDNA calculate ADR?).
ADR compared with other hotel metrics
| Metric | What it measures | How it is calculated |
|---|---|---|
| ADR | Average price paid per room sold (demand) | Room revenue ÷ rooms sold |
| RevPAR | Room revenue across every room available (supply) | Room revenue ÷ rooms available, or a function of occupancy and ADR |
| Occupancy rate | The measure that combines with ADR to give RevPAR | See the occupancy rate page |
| ARR (average room rate) | Average price paid, sometimes used for longer periods | Same formula as ADR |
| Average published rate (APR) | Average of the rates a hotel publishes | Average of the range of published room rates |
ADR is based strictly on rooms sold, while RevPAR is based on all available rooms, which is why a hotel watches both. The formulas for ADR and average room rate are the same; ARR is referenced less often and is sometimes preferred for reporting over longer periods. ADR reflects what was actually paid for rooms in past periods, while average published rate averages the range of rates on offer (CoStar, What Is Average Daily Rate (ADR) and How to Calculate It).
Frequently asked questions
What does ADR mean in the hotel industry?
How do you calculate hotel ADR?
Why is ADR important to a hotel?
Is Airbnb's ADR the same as a hotel's ADR?
Related terms
See all termsWhere Jetstream fits
ADR is the average of the rates a property actually sells at, across its own website, OTAs, rental platforms and every other channel it uses. Each of those channels needs the right rooms, rates and availability, kept current as prices change. Jetstream builds an AI channel manager that connects a property's systems to the channels where guests book and keeps rates and availability in sync on each one in real time.