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What Is Average Daily Rate (ADR) in Short-Term Rentals?

January 22, 2025

Summary

What is ADR? 

Average Daily Rate (ADR) is the average revenue earned per booked night at your property. It's a fundamental metric that shows your true nightly rate performance over time.

Why it matters

ADR helps you evaluate your property's performance and competitive position. When analyzed alongside occupancy rates, ADR can tell you whether you're maximizing revenue through the right balance of pricing and bookings.

Who should know it 

Property owners, revenue managers, market analysts, and investors who need to evaluate pricing performance and market opportunities.

Where you'll see it

Throughout revenue reports, pricing tools, market analyses, and financial planning—anywhere rental performance is being measured or optimized.