What it means in plain language
If your hotel sold 100 rooms last night for a total of $15,000, your ADR is $150. ADR ignores empty rooms - that's why it's misleading on its own and why pros pair it with occupancy and RevPAR. A rising ADR with falling occupancy almost always means you priced yourself out of the market on the shoulder nights.
How ADR fits in the bigger picture
ADR doesn't live alone - it sits inside the Metrics & KPIs category and connects to 3 closely related concepts most working revenue managers track in the same breath. Pair this definition with the related terms below to build a working mental model - definitions in isolation are easy to memorize and easy to misuse.
Related terms you should also know
Each of these is one click away - start with whichever you don't already use daily: