ADR
Calculate achieved Average Daily Rate and compare against a competitive set.
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.
- 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
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Export
Live Results
ADR
£85
ADR Net of Commission
£81
Rate Index vs Comp Set
0.92x
Annual Commission Cost
£102,510