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ADR (average daily rate)

The average price paid per hotel room sold.

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What does ADR (average daily rate) mean?

Average daily rate is rooms revenue divided by the number of rooms sold in a period. Example: a hotel earns 120,000 from 800 rooms sold, so its ADR is 150. It counts only rooms that were sold, so empty rooms do not pull it down. Hotels raise ADR through pricing by demand (higher prices on busy nights), a better room mix, and direct bookings that avoid OTA commission. Pushing ADR too high can cut occupancy, which is why RevPAR is the fuller measure.

Where does it come up in case interview prep?