What does the acronym "ADR" stand for in hotel management?

In hotel management, the acronym "ADR" stands for Average Daily Rate. This key performance metric represents the average revenue earned for an occupied room on a given day. It is calculated by dividing the total room revenue by the number of rooms sold, excluding complimentary rooms.

Understanding ADR is crucial for hotel management as it provides insight into pricing strategies, revenue generation, and overall financial performance. A higher ADR indicates that a hotel is effectively charging more per room, which can be a sign of a well-positioned property within the market, providing quality amenities or exceptional service. By tracking ADR, hotel managers can assess trends over time and make informed decisions about marketing strategies, pricing adjustments, and revenue management.