Average Daily Rate (ADR)

Average daily rate (ADR) is the average amount a short-term rental earns per booked night over a period, calculated as room revenue divided by the number of booked nights. It excludes nights that weren't sold.

ADR measures pricing power. Read alongside occupancy rate, it tells an operator whether revenue is coming from filling more nights or charging more per night — and dynamic pricing is the tool most often used to move it.