ADR is the average price actually paid per occupied room — room revenue divided by rooms sold. It strips out empty rooms to show how much each sold room earned.
The example
$14,400 revenue, 96 rooms sold.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Room revenue | 14400 |
| 3 | Rooms sold | 96 → $150 |
The formula
The formula:
How it works
How it works:
- Room revenue is rooms-only revenue — exclude food, spa, and other ancillary income.
- Divide by rooms sold (occupied), not rooms available, so empty rooms don’t dilute the rate.
- ADR shows the average price achieved per occupied room.
- Combine with occupancy for RevPAR:
ADR × occupancy.
ADR vs RevPAR: ADR answers “what did a sold room go for?” RevPAR answers “what did each available room earn?” A resort can post a high ADR but weak RevPAR if occupancy is low. Revenue managers move both levers — sometimes trading a little ADR for much more occupancy.
Try it: interactive demo
Room revenue and rooms sold.
Variations
RevPAR from ADR
× occupancy:
Room revenue
Rebuild it:
Rooms-only revenue
Strip ancillaries:
Pitfalls & errors
Rooms sold, not available. Dividing by available gives RevPAR, not ADR.
Rooms-only revenue. Exclude food, parking, and spa from the numerator.
Net of comps. Decide whether complimentary rooms count as sold — be consistent.
Practice workbook
Frequently asked questions
How do I calculate ADR in Excel?
What's the difference between ADR and RevPAR?
What revenue goes into ADR?
Stop fighting formulas. Learn them in a day.
This recipe is one of hundreds of real-world formulas we teach. Our Excel Formulas & Functions class covers lookups, logic, text, and dynamic arrays hands-on — live in Dallas–Fort Worth, Houston, Austin, Oklahoma City, Denver, or online.
See the Formulas & Functions Class