.hotel-adr-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
padding: 20px;
background: #fff;
}
.calc-container {
background-color: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calc-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
.calc-group {
flex: 1;
min-width: 250px;
display: flex;
flex-direction: column;
}
.calc-group label {
font-weight: 600;
margin-bottom: 8px;
color: #333;
font-size: 14px;
}
.calc-group input {
padding: 12px;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 16px;
transition: border-color 0.2s;
}
.calc-group input:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 0 3px rgba(0,123,255,0.1);
}
.calc-btn {
background-color: #0056b3;
color: white;
border: none;
padding: 14px 24px;
font-size: 16px;
font-weight: 600;
border-radius: 4px;
cursor: pointer;
width: 100%;
transition: background-color 0.2s;
}
.calc-btn:hover {
background-color: #004494;
}
.result-box {
margin-top: 25px;
padding: 20px;
background-color: #e8f4fd;
border-radius: 6px;
text-align: center;
border: 1px solid #b8daff;
display: none;
}
.result-label {
color: #004085;
font-size: 14px;
font-weight: 600;
text-transform: uppercase;
letter-spacing: 0.5px;
}
.result-value {
color: #0056b3;
font-size: 36px;
font-weight: 700;
margin-top: 5px;
}
.error-msg {
color: #dc3545;
font-size: 14px;
margin-top: 10px;
display: none;
text-align: center;
}
.article-content {
line-height: 1.6;
color: #212529;
}
.article-content h2 {
font-size: 24px;
margin-top: 30px;
margin-bottom: 15px;
color: #333;
}
.article-content h3 {
font-size: 20px;
margin-top: 25px;
margin-bottom: 12px;
color: #444;
}
.article-content p {
margin-bottom: 15px;
}
.article-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.article-content li {
margin-bottom: 8px;
}
.formula-box {
background: #f1f3f5;
padding: 15px;
border-left: 4px solid #6c757d;
font-family: monospace;
margin: 20px 0;
font-size: 16px;
}
function calculateHotelADR() {
var revenueInput = document.getElementById('roomRevenue');
var roomsInput = document.getElementById('roomsSold');
var resultBox = document.getElementById('resultBox');
var adrDisplay = document.getElementById('adrValue');
var errorDisplay = document.getElementById('errorDisplay');
// Reset display
resultBox.style.display = 'none';
errorDisplay.style.display = 'none';
// Get values
var revenue = parseFloat(revenueInput.value);
var rooms = parseFloat(roomsInput.value);
// Validation
if (isNaN(revenue) || isNaN(rooms)) {
errorDisplay.textContent = "Please enter valid numeric values for both fields.";
errorDisplay.style.display = 'block';
return;
}
if (rooms <= 0) {
errorDisplay.textContent = "Number of rooms sold must be greater than zero.";
errorDisplay.style.display = 'block';
return;
}
if (revenue < 0) {
errorDisplay.textContent = "Revenue cannot be negative.";
errorDisplay.style.display = 'block';
return;
}
// Calculation Logic
var adr = revenue / rooms;
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
// Update UI
adrDisplay.textContent = formatter.format(adr);
resultBox.style.display = 'block';
}
Understanding Average Daily Rate (ADR) in Hospitality
Average Daily Rate (ADR) is one of the most critical Key Performance Indicators (KPIs) in the hotel and hospitality industry. It measures the average rental income earned per paid occupied room for a specific time period. While ADR tells you how much revenue each room is generating on average, it does not account for unsold rooms, which is why it is often analyzed alongside Occupancy Rate and RevPAR (Revenue Per Available Room).
The Hotel ADR Formula
Calculating ADR is straightforward. You simply divide the total room revenue generated by the number of rooms sold (occupied). Note that complimentary rooms or rooms used for internal staff are typically excluded from the "rooms sold" count to ensure the metric reflects actual paying demand.
ADR = Total Room Revenue / Number of Rooms Sold
Example Calculation
Let's say a boutique hotel generated $15,000 in room revenue on a Friday night. On that same night, the hotel had 120 paying guests (rooms sold).
- Room Revenue: $15,000
- Rooms Sold: 120
- ADR: $15,000 / 120 = $125.00
This means the average price paid by guests for a room that night was $125.00.
Why is ADR Important?
Monitoring ADR allows hotel managers to understand their pricing strategy's effectiveness.
- Competitor Benchmarking: Comparing your ADR to a competitive set (Compset) helps determine if you are underpricing or overpricing your inventory.
- Revenue Management: Increasing ADR is a primary goal of revenue management strategies, often achieved through upselling, cross-selling, and dynamic pricing models during high-demand periods.
- Profitability: Since operational costs per occupied room (cleaning, utilities, amenities) are relatively fixed, increasing the ADR directly boosts the bottom line.
ADR vs. RevPAR
It is crucial not to confuse ADR with RevPAR. While ADR measures the average price of sold rooms, RevPAR measures the revenue generated across all available rooms (including empty ones).
For example, if a hotel has high ADR but very low occupancy, its overall profitability (RevPAR) might still be low. Therefore, a balanced strategy aims to maximize RevPAR by finding the sweet spot between a high ADR and a high Occupancy Rate.
Strategies to Increase ADR
To improve your Average Daily Rate without sacrificing occupancy, consider these tactics:
- Focus on Segmentation: Target higher-paying market segments such as corporate travelers or luxury leisure guests.
- Upselling: Encourage guests to upgrade to suites or premium views during the booking process or at check-in.
- Manage OTA dependency: Direct bookings often yield a higher effective ADR because you avoid the commission fees associated with Online Travel Agencies (OTAs).
- Length of Stay (LOS) Restrictions: During peak demand events, require minimum stays to filter out lower-value, one-night stays.