Net ADR Yield

The Net ADR Yield calculator computes the Net Average Daily Rate Yield for a room in a hotel or similar establishment.

INSTRUCTION: Choose units and enter the following:

• (RR)  This is the Room Rate
• (RGF)  This is the total amount of fees paid to generate the reservation.
• (RRP)   This is the actual rate paid by the customer for the room(s).

Net ADR Yield (NY): The calculator returns the Net ADR Yield as a percentage.  However, this can be automatically converted to a decimal via the pull-down menu.

The Math / Science

The formula for Net ADR Yield is:

      NY = (RR - RGF)/RRP

where:

• NY is the net ADR Yield
• RR is the room rate
• RGF is the room sale generation fee
• RRP is the room rate paid

Net ADR Yield is the portion of ADR realized by a hotel after subtracting the cost fees and assessments associated with channels that produced the room sale.  These fees often come from:

• Travel Sites on the Internet
• Booking Systems 
• Reservation System

Working Example

A Room at a hotel has a rate of $96.60 per night.  The internet reservation service charges the hotel $5 for every booking, and the guest's actual price was $96.60.  The Net ADR Yield will be as follows:

Net ADR Yield = `($96.60 - $5.00)/($96.60)` =  0.94818 or 94.81%

Related Calculators:

• Hotel's Required ADR
• Average Daily Rate

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• "Definition of Net." Alanpedia.com. N.p., n.d. Web. 07 Aug. 2015.