ADR -- Average Daily Rate

ADR stands for Average Daily Rate -- the average room revenue earned per occupied room. It shows what a hotel actually sells its rooms for, not what the rate card says.

That distinction matters. List prices say little when discounts, early-booker rates, and packages pull the actual room revenue down. ADR shows what really lands.

What we see in practice: A 60-room mid-market property in upstate New York lifts ADR by 8% over a year, from USD 142 to USD 153. Looks like a win. The RevPAR tells the other half: it slips from USD 108 to USD 103, because occupancy drops from 76% to 67%. Some repeat guests stop coming back. The hotel earns more per occupied room and sells fewer rooms. Net result: less rooms revenue, not more. ADR went up. The bottom line didn't. That is what happens when rate and demand are read separately. ADR always needs RevPAR as a cross-check.