Average Daily Rate (ADR)
ADR is the average price a short-term rental earns per booked night, calculated as room revenue divided by the number of nights booked. It measures pricing power, separate from how often the place is booked.
ADR isolates one half of short-term rental revenue: the price guests pay, ignoring how full your calendar is. You take the revenue from booked nights and divide by the number of booked nights. Cleaning fees and other pass-through charges are usually excluded so the figure stays comparable across listings.
On its own, ADR can mislead. A host can post a high ADR by pricing aggressively and accepting low occupancy, or a low ADR by discounting to stay full. That is why ADR is most useful paired with occupancy, and why the two combine into RevPAR, the revenue per available night. Our guide to calculating Airbnb income shows how to estimate ADR for your market from comparable listings and feed it into a realistic revenue projection rather than an optimistic guess.
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Guides that put this term to work
Related terms: Revenue Per Available Room (RevPAR) , Occupancy Rate
Last updated . Part of the FinExplained finance glossary .