Average Daily Rate (ADR) or Average Room Rate (ARR)
Formula: Room revenue gross / Total occupied rooms
The difference between the two is that ADR (Average Daily Rate) is calculated for ONE day while ARR (average room rate) is calculated for a certain period of time (week, month, year).
Formula: Room revenue gross / highest possible revenue * 100%
A) Formula = ADR x number of rooms sold
Example = € 110 x 55 rooms sold = € 6050 (Room revenue gross)
B) Calculate the Yield percentage (highest potential revenue percentage)
Formula = Room revenue gross / highest possible revenue
Example = € 6050 / € 15000 *100% = 40,33%
Highest possible revenue is calculated considering all available rooms * highest possible rate applied by the hotel. In the example above: the total amount of available rooms is 100 while the highest rate charged is € 150.
Revenue Per Available Room (RevPAR)
1. Formula RevPAR: room revenue gross/ total rooms available
2. Formula RevPAR: occupancy * ADR
Formula : total occupied rooms / total available rooms * 100%