In hospitality metrics, ADR stands for which term?

• A. Average daily rate
• B. Available daily revenue
• C. Actual daily rate
• D. Aggregate daily rating

Answer: (A)

Average Daily Rate is the term used here. It measures the average price paid for each room that is sold on a given day. You find it by dividing the total room revenue by the number of rooms sold that day. This metric focuses on pricing for rooms that actually traded hands, helping you gauge pricing effectiveness and revenue per sold room.

To see how it fits with other metrics, ADR differs from RevPAR, which spreads revenue over all available rooms (whether sold or not). For example, if a hotel sells 60 rooms for $150 each, the ADR is $150. If the property has 100 rooms available, occupancy is 60%, and RevPAR would be $150 × 0.60 = $90. The other terms aren’t standard metrics for this concept.