The formula to calculate the Average Daily Rate (ADR) is:
ADR=RRS
Where:
Let's say the total revenue for the day (R) is $5000 and the number of rooms sold (RS) is 50. Using the formula:
ADR=500050=100
So, the Average Daily Rate (ADR) is $100 per room.
Definition: The average daily rate (ADR) is a measure of the average income earned per paid occupied room per day.
Formula: ADR=Total Room RevenueNumber of Rooms Sold
Example: ADR=500050
Definition: The daily rate is the amount earned or paid per day.
Formula: Daily Rate=Total AmountNumber of Days
Example: Daily Rate=300030
Definition: The daily percentage rate is the interest rate charged or earned per day.
Formula: Daily Percentage Rate=Annual Percentage Rate365
Example: Daily Percentage Rate=5365
Definition: The daily rate can be calculated from an annual salary.
Formula: Daily Rate=Annual Salary365
Example: Daily Rate=50000365
Definition: The daily rate can be calculated from an annual rate.
Formula: Daily Rate=Annual Rate365
Example: Daily Rate=12365