ADR stands for Average Daily Rate. In a short-term rental, it measures the average accommodation revenue generated by each occupied night during a defined period.

It is a pricing metric, not a complete performance score. Its value comes from combining it with availability, costs and profit.

What this guide gives you
01

A clear definition of the metric or operating question.

02

A calculation you can reproduce with your own data.

03

The limits that prevent the number being misread.

01 · The formula

How to calculate ADR

The result means that every sold night produced an average of €120 in accommodation revenue during the period.

ADRAccommodation revenue ÷ occupied nights

€2,400 ÷ 20 nights = €120 ADR.

02 · Keep it comparable

Do not mix cleaning income into ADR

Use accommodation revenue rather than total revenue including the cleaning fee. Cleaning is charged per stay, so including it can make a property with shorter stays look as if it has stronger pricing simply because it charges cleaning more often.

03 · Avoid the trap

A high ADR is not always good news

You cannot tell which property works better from ADR alone. Add RevPAR, total revenue and operating profit to understand the balance.

PropertyADROccupancy
Property A€18035%
Property B€13575%
Property A sells at a higher rate. Property B sells much more of its available inventory.
04 · Use the trend

Use ADR to investigate changes

The insight lives in the relationship between metrics, not in chasing an isolated number.

  • Has ADR increased versus the equivalent period?
  • Did the increase coincide with an excessive occupancy drop?
  • Does a lower-ADR property produce more profit per occupied night?
  • Are discounts pushing the average rate too far down?
05 · Complete the picture

Move from ADR to operating profit

ADR is a revenue metric and includes no costs. A rising ADR can coexist with a falling margin if expenses grow faster.

  • ADR
  • Occupancy
  • RevPAR
  • Revenue
  • Operating costs
  • Operating profit and margin
Continue with a specific question

Related long-tail guides

how RevPAR combines ADR and occupancy in short-term rentalsSee why a higher nightly rate can still produce weaker available-night revenue.which operating costs can reduce a high vacation-rental ADRConnect commercial pricing performance with the cost structure behind it.how to compare short-term rental revenue with operating profitAvoid ranking properties by top-line revenue alone.
Frequently asked questions

Clear answers, without the jargon

What does ADR mean on Airbnb?

It is the average accommodation revenue per occupied night during a period.

Does the cleaning fee belong in ADR?

For a comparable accommodation-rate metric, it is better to calculate ADR using accommodation revenue only.

Is high ADR better than high occupancy?

Neither should be optimised alone. Look for a sustainable combination of price, occupancy and operating profit.

Editorial methodology

How this guide was prepared

Each example starts with recorded accommodation revenue, completed stays and operating costs. Calculations state their inputs, cleaning income is kept separate where comparability requires it, and no external income benchmark is presented as an expected result.

Hostpartner is an operational analysis tool. It does not calculate VAT, taxes, depreciation, financing or mortgage principal and does not connect to booking platforms, banks or PMS systems.

Metrics in context

See ADR, RevPAR and operating profit in the same period.

Host Profit Dashboard calculates connected operating metrics for the month and properties you select.

  • Built for 1–7 properties
  • Excel 365 + Google Sheets
  • No platform connection required
Calculate ADR, occupancy and operating profit in one dashboard