Overview
The Average Daily Rate is an important metric that is mainly used to compare your property with the competition. It gives you the average revenue for all of your booked rooms.
The ADR of rooms sold is calculated as Total Room Revenue divided by Total Rooms Sold. This includes room rate, manual room revenue, no-show fees, and manual room revenue adjustments.
For example, a property sells multiple rooms at different prices:
- If I sell 1 King room for $100, my ADR is $100. ($100/1 accommodation) = $100 per accommodation.
- If I sell 1 King room for $100 and 1 Queen room for $50, my ADR is $75. ($150/2 accommodations) = $75 per accommodation.
- If I sell 1 King room for $100, 1 Queen room for $50, and 1 dorm bed for $30, my ADR is $60. ($180/3 accommodations) = $60 per accommodation.
In this article, you'll learn how to observe these changes graphically.
Important to know:
- The ADR excludes inclusive or exclusive taxes and fees, as well as cancellation fees.
- For properties with split inventory, the Total Rooms Sold includes physical rooms only.
Access the ADR Report
- From the Main menu
, go to Classic reports
- Click on Production Reports
- Select Average Daily Rate
Navigate the ADR Report
Once there, you can click on Filters to begin narrowing down what you need to see.
- Select the exact dates, year, and the comparison year
- Choose which room types you would like to analyze.
- You can select which reservation source you would like to check. In most cases, it's best to leave them all selected.
- Click on the Apply button to generate the report.
- Export To: Download the report as a PDF/Excel.
This report uses the service date, which is the date the product or service is delivered. With proper permission, the service date can be backdated to recognize revenue and expenses in the correct period. To learn the difference between the Service Date and the Transaction Date, click here.
- In the example below, today is marked by the vertical line. Today's line is very important for understanding pace.
- In the comparison, blue is this year, and red is last year. All the dates before today are in the past and, therefore, unworkable.
- The bottom of the Shaded Area is what we call the Paceline. This line shows you the forecast of the ADR for the month of November as of October 15th. As long as this year's line is on or above the Paceline, you should do better than last year. However, if this year is below the Paceline, it may suggest that you may be falling behind and there is work to be done.
- The top or Red line shows where you ended up. The area in the middle shows the reservation growth (or pace) you experienced between today and that specific date.
- Comparison year legend (in the example below, 2024 vs 2023)
- Toggle between day, week, or month to see the exact detail you are looking for.
- Today's line advances to the next month in month mode/view. By selecting the day or week view, the line will appear on the corresponding day or week.
With the filters applied, you will receive the report generated with the following information:
- Date range (1 day, week, month) - according to the interval settings.
- ADR for the primary selected year.
- Accommodations booked for the primary selected year in number of rooms.
- Revenue for the primary selected year.
-
Change % comparison: Percentage difference in ADR between two time periods (for example, from 2023 to 2025). It’s used to evaluate whether the average price per room has increased or decreased over time. To calculate the Change % from 2023 to 2025, the following formula is used: subtract the 2023 ADR from the 2025 ADR, divide the result by the 2023 ADR, then multiply by 100.
Example:
For January, using the values from the table below, the calculation would be: ($10 − $3.99) ÷ $3.99 × 100 = 150.55%
- Positive percentages are shown in green to show an increase in ADR, while negative percentages are displayed in red to show a decrease.
- If the ADR for the earlier year (e.g., 2023) is $0, the percentage change is not calculated and is represented as 0%.
FAQ
Why does this report use Service Date instead of Transaction Date?
The report uses Service Date as a filterable date to support common reporting needs. The Transaction Date/Time remains immutable to ensure accurate accounting.
How is transaction data handled in the ADR Report?
Transaction data is pulled from the accounting service, which provides detailed transaction-level records aligned with USALI standards. Transactions are not editable, and changes are recorded through equal and opposite reversal entries.
What revenue is included in the ADR calculation?
The ADR calculation includes room rates, no-show fees, and manual room revenue adjustments. Taxes, fees, and cancellation fees are excluded.
How does split inventory affect accommodations counted in ADR?
When Split Inventory is used, accommodations booked include only physical rooms, using their relationship to virtual room types.
Can I email the Average Daily Rate (ADR) Report automatically?
Automatic emailing is not available for this report. The ADR Report can be downloaded using the Export To option and shared as needed.
What are Accounting Codes in the ADR Report?
Accounting Codes categorize specific transactions following USALI standards.
In this report, transactions are associated with the following accounting buckets:
| Description | Code |
|---|---|
|
Total Room Revenue: Total of Room Rate Other Room Revenue Room Revenue Adjustments |
1000 + 1000R + 1000V + 1100 + 1100R + 1100V + 1200 + 1200R + 1200V + 1000A + 1100A + 1200A |
Below is an example of the Accounting Codes associated with the transactions:
The ADR Report does not display Accounting Codes.
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