This index is used to calculate the average price of a daily sale.  Average Daily Rate is rooms revenue earned divided by number of rooms sold. ADR may also be used to evaluate segments/markets/types of rooms. It is well-known that the business segment has average prices which are lower than the leisure segment (compensated by the more frequent levels of bookings). A standard room will obviously have an average price that is lower than that of a suite. Synonymous terms are Average Room Rate or Average House Rate, both of which refer to analysis over a daily period.

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