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Definition

ADR (Average Daily Rate)

Also known as: average daily rate · average nightly rate

ADR (Average Daily Rate) is the average rental income per booked night over a period. Calculated as net accommodation revenue divided by booked nights, it's the primary pricing benchmark — it lets you compare market prices across similar properties while isolating the effect of occupancy.

Formula: ADR = Net accommodation revenue / Booked nights. Revenue should exclude taxes, cleaning fees and ancillary fees to stay comparable across properties.

A high ADR alone isn't enough — a cottage at CA$800/night booked 30 nights per year earns less than a cottage at CA$350/night booked 180 nights. That's why ADR is combined with occupancy to compute RevPAR (revenue per available night), the overall performance metric.

Reserver.ca uses per-micro-market ADR (region × season × type) from Wheelhouse and Dominion to calibrate dynamic pricing on every managed cottage.