Average Room Rate Calculation

Calculate your average daily rate.

Average room rate calculation.

Average daily rate or average room rate measures the average price that a guest pays per room at your hotel. 8 000 divided by 100 gives an average rate of 80 per room. Together with the average room occupancy can be combined into the so called revpar the revenue per available room. The average daily rate adr is needed to calculate the revenue per available room revpar.

By taking the harr the management can find out the actual effect of complimentary stays on the average room rate. Your average daily rate is the average rental income per paid occupied room in a given time period. Revpar is calculated by multiplying a hotel s average daily room rate by its occupancy rate. It is a hotel kpi which measures the average rate per available room similarly to adr.

The average achieved room rate is one of the key figures in the hotel industry. More information about required supply air per person can be found here. The average daily rate tells a lodging company how much they make per room on average in a given day. Your average daily rate is the average rental income per paid occupied room over 30 days.

It is used alongside revpar revenue per available room and occupancy rate as a key success metric. Be aware that it may be necessary to calculate required supply air based on no. Occupancy rate is the number of rooms you have filled as a percentage. To get more detailed insights you can break it down by room nights and bed nights.

You calculate the average room rates as follows. Net lodging sales divided by the number of hired out rooms. However arr can also be used to measure the average rate for a longer period of time weekly monthly while adr may only be used to measure the average. What is average daily rate adr.

Thus the average room rate is the sum 8 000 divided by the total number of rooms 100. Take advantage of our free calculator to calculate your property s adr. The table below indicates air change rates air changes per hour commonly used in different types of rooms and buildings. In the example revpar is 0 71 times 80 which is 56 80.

It is one of the three main success metrics used to see how well your b b small hotel vacation rental or airbnb is performing. Adr average daily rate or arr average room rate is a measure of the average rate paid for the rooms sold calculated by dividing total room revenue by rooms sold. Both of them can be used for the same purpose which is to calculate the average rate of the room. Some hotels calculate arr or adr by also including the complimentary rooms this is called as hotel average rate.

Of persons in the room or building.