Average Daily Rate (ADR) represents the revenue generated per occupied room on a given day, calculated by dividing total room revenue by the number of rooms sold. This metric serves as a fundamental performance indicator for hotel operators, owners, and investors seeking to understand pricing power and revenue optimization effectiveness independent of occupancy levels.
ADR differs from RevPAR (Revenue Per Available Room) in that it isolates pricing strategy from occupancy performance. Hotels can improve ADR through rate increases, dynamic pricing strategies, or shifting the mix toward higher-priced room categories. The metric becomes particularly relevant when evaluating special events or seasonal periods, where pricing strategies may shift significantly despite occupancy patterns.
Hotel operators monitor ADR trends alongside occupancy rates to assess overall financial health and competitive positioning. Changes in ADR can signal market demand shifts, competitive pressure, or the effectiveness of revenue management practices. Understanding ADR performance helps stakeholders make informed decisions about rate strategy, inventory allocation, and capital investment priorities.
MGM's Q2 revenue topped $4.5 billion and adjusted EPS cleared consensus, but Strip hotel revenue fell 2% and ADR dropped 4% to $242. For a company leaning into luxury positioning, that's a trend line that deserves more scrutiny than the earnings beat.
U.S. hotel performance just posted its strongest weekly numbers of 2026, and 97% of the demand growth came from markets that never hosted a single World Cup match. If you've been banking your summer forecast on soccer tourists, you might be looking at the wrong scoreboard.
IHG posted 4.4% global RevPAR growth in Q1, blowing past the 3.3% consensus, with groups up 7% and business up 6%. The question every GM should be asking isn't whether the brand is winning... it's whether your property is getting its share.
The latest AHLA survey confirms what every operator already feels in their gut: costs are eating you alive while rate growth has flatlined. The question isn't whether your margins are compressing. It's how much longer you can absorb the hit before something breaks.
The industry is celebrating 4.9% RevPAR growth while labor costs per occupied room jumped 12.8%. If you're not running those two numbers side by side, you're celebrating a loss.
The UK's competition authority is investigating whether Hilton, IHG, Marriott, and CoStar's STR platform enabled algorithmic collusion on room rates. If you've ever benchmarked your ADR against your comp set... yeah, they're talking about you.
A traveling arts initiative is launching in Northern California during Super Bowl week, but don't confuse cultural buzz with hotel demand drivers. Here's what actually matters.
