Hotels

ADR

Calculate achieved Average Daily Rate and compare against a competitive set.

Beginner

Introduction

Who this is for: Hotel operators and investors benchmarking rate performance.

Why it matters: ADR is achieved rate, not rack rate. The gap between them — discounting, OTA commission, corporate rates — is where margin quietly disappears. Rate Index against a competitive set shows whether you are winning or buying share.

Typical scenario: An operator checking whether their £85 achieved ADR is competitive against a £92 market average.

Common mistakes:
  • Using rack rate rather than net achieved rate.
  • Reporting ADR gross of OTA commission, which overstates it by 15-20%.
  • Comparing ADR against a competitive set that is not genuinely comparable.

Inputs

Performance

£

room nights

%
%

Benchmark

£

Analysis

Achieved ADR is £84.98, or £80.65 net of OTA commission. Against a competitive set at £92, the rate index is 0.92 — below market by £7.02 per room night.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

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Sensitivity Analysis

Sensitivity

Adjust the variables below to stress-test this scenario. Results update instantly.

£2,010,000
£0£4,020,000
£92
£0£184

Export

Live Results

ADR

£85

ADR Net of Commission

£81

Rate Index vs Comp Set

0.92x

Annual Commission Cost

£102,510

Gap to Comp Set£-7
Revenue at Comp Set ADR£2,175,984