Average Daily Rate (ADR) Calculator
Compute a hotel or homestay's Average Daily Rate (ADR) and, with occupancy, Revenue per Available Room (RevPAR).
Input Data
Results
At a glance:Average Daily Rate (ADR) measures the average revenue per room sold — a core hotel metric. ADR = room revenue / rooms sold (only revenue-generating rooms, excluding complimentary, owner-used or vacant); RevPAR = ADR x occupancy%. Higher ADR means more revenue per room, but must be read with occupancy — high ADR with high vacancy is not good.
Formula
ADR = room revenue / rooms sold.
Rooms sold counts only revenue-generating rooms (exclude complimentary, owner-used, vacant).
RevPAR = ADR × occupancy%.
How to Use
- Enter room revenue for the period.
- Enter the revenue-generating rooms sold.
- Enter occupancy to compute RevPAR, and view ADR and RevPAR.
ADR and RevPAR under different room revenue, rooms sold and occupancy.
| Room revenue | Rooms sold | ADR | Occupancy | RevPAR |
|---|---|---|---|---|
| 5,000 | 50 | 100 | 80% | 80 |
| 8,000 | 50 | 160 | 80% | 128 |
| 5,000 | 40 | 125 | 60% | 75 |
| 12,000 | 100 | 120 | 90% | 108 |
Case Studies
Case 1: High price vs high occupancy — which earns more?
A Hong Kong boutique hotel uses a high-price strategy in peak season: ADR HK$200 but only 50% occupancy, RevPAR = 200 × 50% = HK$100. A neighbouring budget-style hotel: ADR HK$120 with 90% occupancy, RevPAR = 120 × 90% = HK$108.
Although the second hotel's price (ADR) is clearly lower, its rooms are nearly full, so revenue per AVAILABLE room (RevPAR) is actually higher. This shows 'high price' ≠ 'more profit' — an empty room earns zero, and over-pricing that scares off guests can lower total revenue.
Revenue management's core is balancing ADR (price) and occupancy: discount to boost occupancy in low season, raise price in peak season, aiming to maximise RevPAR (not ADR alone).
Case 2: Count room-nights correctly to avoid overstating ADR
A homestay host earns HK$5,000 in room revenue one month. There were 50 occupied room-nights, but 10 were complimentary (friends) or staff-used; only 40 actually generated revenue.
Wrongly using 50 as the denominator: ADR = 5,000 ÷ 50 = HK$100, understating the true price; correctly counting only 40 paid room-nights: ADR = 5,000 ÷ 40 = HK$125. Inflating the denominator lowers ADR and may prompt reckless price hikes.
For ADR, the denominator 'rooms sold' must count only paid rooms, using a consistent 'room × night' unit (e.g. 10 rooms × 3 nights = 30 room-nights). Compute monthly to see seasonality and promotion effects on ADR, occupancy and RevPAR.
FAQ
What is the difference between ADR and RevPAR?
ADR measures average revenue per room SOLD; RevPAR measures revenue per AVAILABLE room = ADR x occupancy. RevPAR captures both price and occupancy, so it reflects revenue performance more fully — high ADR with low occupancy still gives low RevPAR.
How should rooms sold be counted?
Count only rooms that actually generated revenue. Complimentary, staff and vacant rooms should be excluded, or ADR is understated. For comparison, use a consistent unit — e.g. room x night (100 rooms x 3 nights = 300 room-nights).
How often should I compute ADR?
Monthly is recommended. Daily is tedious; a monthly view shows seasonality and promotion effects more clearly, helping pricing and revenue-management decisions.
How do ADR, occupancy and RevPAR work together?
They are the core triangle of hotel revenue management. ADR shows pricing level, occupancy shows how much sold, and RevPAR = ADR x occupancy combines both into revenue per available room — the most complete metric. If RevPAR falls, check whether ADR dropped or occupancy dropped, then act: low ADR may mean underpricing or competition; low occupancy may mean weak demand or poor distribution. Advanced users also watch GOPPAR (gross operating profit per available room).
Does ADR apply to Hong Kong homestays (Airbnb)?
The ADR/RevPAR concepts apply to short-term rentals too, helping pricing and occupancy strategy. But Hong Kong tightly regulates short-term residential letting: under the Hotel and Guesthouse Accommodation Ordinance, letting a residential unit for under 28 days without a licence is unlawful and prosecutable; building deeds and owners' corporations may also forbid it. Confirm legality before operating; licensed hotels/guesthouses can freely use ADR/RevPAR. See the Hong Kong Tourism Board for tourism information.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.