ADR

Term from Boutique Hotels industry explained for recruiters

ADR (Average Daily Rate) is a key performance measure used in the hotel industry to track 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. Hotel managers and owners use ADR to understand their pricing strategy and how well their property is performing compared to similar hotels. When you see ADR mentioned in a resume, it usually means the person has experience in hotel revenue management, pricing strategies, or general hotel management.

Examples in Resumes

Increased ADR by 15% through strategic room pricing and market analysis

Managed property achieving ADR of $250 in peak season

Developed pricing strategies that improved Average Daily Rate by 20% year-over-year

Typical job title: "Revenue Managers"

Also try searching for:

Hotel Revenue Manager Hospitality Revenue Manager Hotel General Manager Revenue Optimization Manager Hotel Operations Manager Room Revenue Manager

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 market analysis, competitive pricing, package creation, targeting different market segments, and using historical data to make informed decisions. They should also mention working with marketing to create demand.

Q: How do you balance ADR with occupancy rates to maximize revenue?

Expected Answer: Look for answers that show understanding of RevPAR (Revenue Per Available Room), ability to analyze market conditions, and experience in adjusting prices based on demand while maintaining profitability.

Mid Level Questions

Q: What factors do you consider when setting room rates?

Expected Answer: Candidate should mention seasonality, local events, competitor pricing, operating costs, target market, and historical performance data.

Q: How do you track and analyze ADR performance?

Expected Answer: Should discuss using hotel management software, creating regular reports, comparing performance across different periods, and making data-driven recommendations.

Junior Level Questions

Q: Can you explain what ADR is and how it's calculated?

Expected Answer: Should be able to explain that ADR is total room revenue divided by number of rooms sold, and why it's important for hotel performance.

Q: What's the relationship between ADR and hotel profitability?

Expected Answer: Should understand that higher ADR generally means better profitability, but also recognize the balance needed with occupancy rates.

Experience Level Indicators

Junior (0-2 years)

  • Basic understanding of hotel operations
  • Knowledge of hotel management software
  • Ability to calculate and track ADR
  • Understanding of basic pricing strategies

Mid (2-5 years)

  • Market analysis and competitor research
  • Revenue management fundamentals
  • Experience with pricing strategies
  • Performance reporting and analysis

Senior (5+ years)

  • Advanced revenue management
  • Strategic planning and forecasting
  • Team leadership and training
  • Budget management and optimization

Red Flags to Watch For

  • No understanding of basic hotel metrics
  • Lack of experience with revenue management software
  • Poor mathematical or analytical skills
  • No knowledge of market trends and competitive analysis