Definition
The average revenue earned per sold room in a given period. Calculated by dividing total room revenue by the number of rooms sold. ADR is one of the three fundamental KPIs in hotel revenue management, alongside occupancy and RevPAR, and directly reflects your pricing strategy's effectiveness.
Also related to KPI Dashboard
Related Terms
ARIAverage Rate Index
A competitive benchmarking metric that compares your hotel's ADR to the average ADR of your competitive set. An ARI above 100 means you're achieving higher rates than competitors; below 100 indicates you're pricing below market. Use ARI alongside MPI and RGI for a complete competitive picture.
Learn more →GOPPARGross Operating Profit Per Available Room
The most comprehensive profitability metric in hospitality, measuring actual profit generated per available room after all operating expenses. Unlike RevPAR which only considers revenue, GOPPAR accounts for costs—making it the truest measure of operational efficiency. A hotel can have high RevPAR but low GOPPAR if costs are poorly managed.
Learn more →MPIMarket Penetration Index
A competitive metric comparing your hotel's occupancy to your compset's average occupancy. MPI above 100 means you're capturing more than your fair share of demand; below 100 indicates competitors are winning more bookings. MPI reveals whether your distribution, visibility, or value proposition needs attention—even if absolute occupancy looks healthy.
Learn more →NRevPARNet Revenue Per Available Room
RevPAR after the cost of winning each booking: room revenue minus distribution costs (OTA commissions, payment and transaction fees), divided by the number of available rooms. Two bookings at the same ADR can be worth different amounts depending on the channel they came through. NRevPAR shows that difference and helps you judge the real value of your channel mix.
Learn more →Related Articles
How to Set Minimum and Maximum Room Rates (A Practical Framework)
A step-by-step method to set rate floors and ceilings that protect profitability and keep dynamic pricing disciplined.
Learn more →Hotel Revenue Management Benchmarks: How to Build Numbers You Can Trust
Instead of chasing generic industry averages, build benchmarks for your hotel: comp set indices, YoY baselines, segment mix, and actionable targets.
Learn more →RevPAR, ADR, and Occupancy Explained: The Essential Hotel Metrics
Formulas, examples, and practical interpretation for RevPAR, ADR, and occupancy—plus how dynamic pricing changes the tradeoff between them.
Learn more →Want to improve your ADR?
Sigma Revenue helps hotels improve their key metrics through data-driven revenue management.