Formula to Calculate Average Room Rate (ARR) | Average Daily Rate (ADR)
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.
Some hotels calculate ARR
or ADR by also including the complimentary rooms this is
called as Hotel Average Rate. By Taking the HARR the management can find out
the actual effect of complimentary stays on the average room rate.
The formula for ARR
or ADR calculation with examples:
Average Room Rate
(ARR or ADR) = Total Room Revenue / Total Rooms Sold
OR
Average Room Rate
(ARR or ADR) = Total Room Revenue / Total Occupied Rooms
Average Room Rate
(ARR or ADR) Calculator:
Total Room Revenue :
Total Rooms Occupied:
Total Comp & House:
ARR or ADR
(Occupied Rooms)=
ARR or ADR (Sold
Rooms)=
Example 1:
Total Room Revenue for 01st Jan 2017 = 25000.00$
Total Room Sold for 01st Jan 2017 = 250
ARR or ADR for 01st Jan 2017 = 25000.00 / 250
= 100$
Example 2:
Total Room Revenue for 31st Dec 2016 = 95985.58$
Total Room Sold for 31st Dec 2016 = 277
ARR or ADR for 31st Dec 2016 = 95985.58 / 277
= 346.52$
Example 3 (Monthly ARR/ADR):
Total Room Revenue for the Month of October = 2,250,485.58$
Total Room Sold for the Month of October = 5822
ARR or ADR for October
= 2,250,485.58 / 5822
= 386.55$
The formula
for Hotel Average Rate HARR or HADR calculation
with examples:
Average Hotel Room
Rate (HARR or HADR) = Total Room Revenue / Total Rooms Sold + Comp Rooms
Example 1:
Total Room Revenue for 21st Mar 2017
= 25000$
Total Room Sold for 21st Mar 2017
= 250
Total Complimentary
rooms for 21st Mar 2017 = 2
HARR or HADR for 21st Mar 2017
= 25000 / (250+2)
= 99.20$
Example 2:
Total Room Revenue for 3rd Dec 2015
= 95985.58$
Total Room Sold for 3rd Dec 2015
= 277
Total Complimentary rooms for 3rd Dec 2015 =
2
HARR or HADR for 3rd Dec 2015
= 95985.58 / (277+2)
= 344.03$
Example 3 (Monthly ARR/ADR):
Total Room Revenue for the Month of October = 2,250,485.58
Total Room Sold for the Month of October =
5822
Total Complimentary rooms for October
= 25
ARR or ADR for October
= 2,250,485.58 /
(5822+25)
=384.48$
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