Average Daily Rate (ADR)

The Average Daily Hotel Room Rate calculator computes the average hotel room rate achieved over time based on the revenue associated with hotel room sales and the number of units sold (rooms rented).

INSTRUCTIONS: Choose your preferred units and enter the following;

• (TRR)  Total Revenue from the Rooms Rented for a period.
• (TRS) Total number of units rented for the period.

Average Daily Rate (ADR): The calculator return the average daily rate across the period in U.S. dollars.  However, this can be automatically converted to other currency units via the pull-down menu.

ADR Described

Hotel managers are often interested in the average daily rate (ADR) for their business.  For example.  let's assume that a hotel earns $3,435,000 in revenue from renting rooms in a six month period.  Let's also assume that 22,060 rooms were rented in that period.  The ADR equation goes as follows:

                      ADR = ` ($3,435,000)/(22,060)` =  $155.71

That's $155.71 per room on average.

Hospitality Calculators

• Average Cost per Room - Average expense per room for a period of time.
• Average Daily Rate - Average daily income rate for rooms rented
• Average Sales per Guest Forecast - Forecast based on total forecast and guest count forecast.
• Break-Even Point in Guests Served - Computes the number of guests needed to break even based on fixed costs and margin per guest.
• Contribution Margin per Guest - Computes the margin per guest based on selling price per guest and variable cost per guest.
• Contribution Marge Percent - Computes the percent of contribution margin based on the Selling Price percent and the Variable Cost percent.
• Cost of Food Consumed - Computes the cost of food based on inventory change and purchases.
• Estimated Room Expenses -  Computes the estimated annual expense of rooms based on the expense per room and number of rooms.
• Food Cost Percent for a Restaurant - Computes the percent of costs associated with food for a restaurant.
• Food Selling Price - Computes selling price based on Item Food Cost and percent allocated to food commodity.
• GOPPAR - Gross Operating Profit Per Available Room - Computes the profit based on the gross profit and the total rooms available.
• Guest Count Forecast - Guest count forecast based on last year's and an expected increase.
• Percent Sales Variance - Computes the percentage of the difference in sales in two periods. 

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.