What is ADR (Average Daily Rate)? The STR Metric Every Host Must Understand
ADR is the average revenue earned per booked night. Learn how to calculate it, what drives it, and how to use it alongside RevPAR and occupancy rate to optimize your STR.
Average Daily Rate is one of the three core metrics in short-term rental performance — alongside occupancy rate and RevPAR. It tells you the average price guests are paying per night they stay, stripped of the noise of how many nights you're actually filling.
What Is ADR?
ADR (Average Daily Rate) is the average nightly revenue earned per booked night over a given period. It is calculated by dividing total rental revenue by the number of nights actually booked — not total available nights.
ADR = Total Rental Revenue ÷ Number of Booked Nights
ADR vs. RevPAR: The Critical Difference
ADR measures your pricing per occupied night. RevPAR measures your revenue across all available nights. RevPAR = ADR × Occupancy Rate. A high ADR can mask poor performance if occupancy is low. Always evaluate ADR alongside occupancy and RevPAR.
What Drives ADR for Short-Term Rentals?
- Location: Proximity to beaches, ski slopes, city centers, or major attractions commands premium ADR
- Property size and quality: More bedrooms, better furnishings, and premium amenities justify higher rates
- Unique features: Hot tubs, pools, game rooms, waterfront access — these are ADR multipliers
- Seasonality: Peak-season ADR can be 50–200% higher than off-peak in seasonal markets
- Dynamic pricing: Smart rate management captures demand spikes from events and holidays
- Review score: Higher ratings enable hosts to command ADR premiums over lower-rated competitors
Industry ADR Benchmarks for STRs
- Budget/urban listings (studio/1BR): $80–$130/night
- Mid-range properties (2–3BR): $130–$220/night
- Premium vacation homes (3–5BR): $220–$400/night
- Luxury properties (5BR+, premium amenities): $400–$1,000+/night
Should I prioritize ADR or occupancy rate?
Neither in isolation — prioritize RevPAR. The optimal strategy is the ADR/occupancy combination that maximizes RevPAR for your specific market. In high-demand urban markets, higher ADR with moderate occupancy often beats lower ADR with high occupancy.
Track your real ADR trends across all platforms — start free with MagicBnB.
About MagicBnB
MagicBnB is a short-term rental portfolio intelligence platform that tracks ADR, RevPAR, occupancy rate, NOI, and net profit across your entire portfolio in real time.
