Recruiter's Glossary

Examples: Energy Management Systems • Rate Parity • Guest Folio

ADR (Average Daily Rate)

Term from Hotel Management industry explained for recruiters

ADR (Average Daily Rate) is a key measurement used in the hotel industry to understand how much money a hotel makes from its rooms on average per day. It's calculated by dividing the total room revenue by the number of rooms sold. Think of it as the typical price guests pay for rooms. Hotel managers and revenue specialists use ADR to make decisions about room pricing and to measure how well the hotel is performing compared to competitors. Similar terms include "room rate," "daily rate," or "average room rate."

Examples in Resumes

Increased ADR by 15% through strategic pricing and room upgrades

Monitored and analyzed Average Daily Rate trends to optimize revenue

Achieved highest ADR in the region through effective revenue management strategies

Typical job title: "Revenue Managers"

Also try searching for:

Hotel Revenue Manager Revenue Analyst Hotel Operations Manager Pricing Specialist Revenue Management Director Hotel General Manager

Where to Find Revenue Managers

Professional Organizations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you develop a strategy to improve ADR during low season?

Expected Answer: A senior candidate should discuss various approaches like market segmentation, package deals, corporate partnerships, and analysis of historical data to create targeted pricing strategies that maintain profitability during off-peak periods.

Q: How do you balance ADR growth with occupancy rates?

Expected Answer: The answer should cover understanding of price elasticity, competitive analysis, market demand patterns, and the relationship between rate increases and occupancy impacts on overall revenue.

Mid Level Questions

Q: What factors do you consider when analyzing ADR performance?

Expected Answer: Candidate should mention seasonality, local events, competitor pricing, market conditions, guest demographics, and historical booking patterns.

Q: How do you calculate ADR and what does it tell you about hotel performance?

Expected Answer: Should explain the basic formula (total room revenue divided by rooms sold) and demonstrate understanding of how ADR relates to overall hotel profitability and market positioning.

Junior Level Questions

Q: What is ADR and why is it important?

Expected Answer: Should be able to define ADR as average daily rate and explain its basic importance as a key performance indicator in hotel operations.

Q: What factors can affect a hotel's ADR?

Expected Answer: Should mention basic factors like location, season, room type, local events, and competition.