Hotel's Required ADR
`"Hotel’s Required ADR" = ( ERDR )/( ENRS )`
`(ERDR)"Estimated Rooms Department Revenues"` | ||
`(ENRS)"Estimated Number of Rooms to be Sold"` | ||
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The Hotel's Required Average Daily Rate (ADR) calculator computes what ADR a hotel must have.
INSTRUCTIONS: Choose the preferred currency and enter the following:
- (ERDR) This is the estimated rooms department revenue.
- (ENRS) This is the estimated number of rooms to be sold.
Hotel Required ADR: The calculator returns the ADR in U.S. dollars. However, this can be automatically converted to other currency units via the pull-down menu.
Gneral Information
ADR is a metric widely used in the hospitality industry to indicate the average realized room rental per day. Average daily rate is one of the core indicators - along with other metrics such as occupancy rate and revenue per available room - used to measure the operating performance of a lodging unit such as a hotel or motel. Generally abbreviated as ADR.
Resource:
- Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
- "Average Daily Rate (ADR) Definition | Investopedia." Investopedia. N.p., 14 May 2011. Web. 07 Aug. 2015.
