ADR (average daily rate) — the same figure this site calls "average nightly rate" — is the average amount actually paid per booked night. It only counts nights that sold, not the property's total available nights.
ADR = Total Booking Revenue ÷ Nights Booked
Try it with your own numbers
ADR vs. RevPAR
ADR and RevPAR get confused often because they're built from the same underlying numbers, but they answer different questions. ADR answers "what did a booked night actually pay, on average?" RevPAR answers "how much did every available night earn, booked or not?" A property can have an excellent ADR and a poor RevPAR if occupancy is low — the nights that did sell paid well, but too many sat empty.
Why it's only half the picture
A high ADR on its own can be misleading: a property priced high enough to book rarely can still show an impressive average nightly rate while actually underperforming. ADR is most useful read alongside occupancy rate, not in isolation.
Read the full breakdown of occupancy rate vs. average nightly rate →
Before you set an ADR target
ADR is a measurement of what already happened — useful for tracking performance, but not itself a starting price. If you're working out what to charge in the first place, start from your actual costs instead: the free rate calculator works out the lowest nightly rate that covers cleaning, fixed costs, and platform fees before you even get to demand-based pricing.