Average Daily Rate (ADR)
It is the average price you actually earned per booked night — not your listed rate before discounts.
Formal definition
Average daily rate equals total short-term rental revenue divided by the number of nights sold in the period.
Why it matters
ADR times occupancy drives RevPAR; cutting rate to fill nights can hurt net yield if cleaning and fees are fixed.
Where you see it
- Airbnb host analytics
- Hotel revenue management
- STR investment pro formas
- Revenue management systems
- Hospitality finance courses
Worked example
- STR revenue: $36,000.
- Nights booked: 180.
- ADR = $36,000 ÷ 180 = $200/night.
- Interpretation: Average booked night earned $200 before platform and cleaning fees.
How Business metrics calculates it
Revenue ÷ Nights booked.
Where people fool themselves
ADR from the listing’s “average” including peak holidays you blocked for yourself is not your ADR. Use payout ÷ booked nights.
Run it on your own numbers: the Short-Term Rental calculator.