Hotel ADR Calculator
What is your season's ADR? Not the average of the monthly ADRs — the months didn't sell the same number of rooms. Enter rooms sold and room revenue for each period and see the right number, and how far it is from the obvious calculation. Free, no sign-up.
What is ADR?
ADR (Average Daily Rate) is the average rate you achieved per room sold. Only room revenue goes into the numerator; only rooms sold go into the denominator — empty rooms have no business there. If you include them, you're not calculating ADR, you're calculating RevPAR.
How to combine periods
For a single month the formula fits on one line. The mistake shows up when you want one ADR for several months together: the obvious way — the average of the monthly ADRs — gives the month with 550 rooms the same weight as the month with 1,300. It counts months, while ADR is a rate per room.
add up revenue, add up rooms, divide — never the average of the ADRs
With the article's example: €258,000 ÷ 3,000 rooms = €86.00. The simple average (55 + 85 + 100) ÷ 3 gives €80.00 — six euros less on every room sold, and €18,000 that a budget built on 80 doesn't see.
Up or down?
Both. The simple average underestimates when the expensive periods sell the most rooms, and overestimates when the business falls in the cheap ones. A rule like “the simple average fools you upwards” is wrong half the time. The only safe rule is not to use it.
The two methods give the same number only when every period sold exactly the same number of rooms (or they all had the same ADR). If you test with three months of 1,000 rooms each and see two identical numbers, nothing is broken — in a real season it just doesn't happen.
What this tool doesn't calculate
- Occupancy: it needs available rooms and answers a different question. For a single period, the RevPAR calculator shows occupancy, ADR and RevPAR together.
- OTA commissions: ADR is gross — the same number whether the night was all direct or all through OTAs. WisDom RM has no channel field and doesn't assume a percentage, so neither does this tool.
- What you keep: ADR tells you what you charged, not what you earned. That's what CPOR and the break-even calculator are for.
- Room-type mix: ADR can fall without you changing a single rate, simply because you sold fewer suites. The tool combines periods; it doesn't tell you what was sold within each one.
- Comparison with last year: July's ADR will almost always come out below August's, and that says nothing. The meaningful comparison is with the same period last year.
Never want to work it out again?
In WisDom RM you don't need to remember there's an issue. You record the night, and every average ADR you see is weighted: the 7-day ADR in the Morning Report comes out as revenue ÷ rooms over the last seven recorded nights, and the same formula applies on every other screen that shows an average ADR. An average of daily ADRs exists nowhere — there, a night with 3 rooms would weigh as much as a night with 45. In every plan.