ADR - Average Daily Rate

ADR (Average Daily Rate) is how much money a hotel makes per room sold per night, on average. It's calculated by dividing total room revenue by the number of rooms sold. ADR doesn't include unsold rooms, only the ones that were actually booked. As a guest, ADR is useful when comparing hotels: a Paris palace might have an ADR of €1,500, €2,500 a night, while a mid-range business hotel runs €150, €250. Hotels track ADR weekly, sometimes daily, because it's a key indicator of pricing power and brand health. When you see articles about "hotel rates increasing 12% year-over-year," that's usually ADR. ADR rises when demand is strong and falls when hotels discount to fill rooms.