Average Daily Rate
Average revenue earned per sold night.
Definition
Average Daily Rate is Average revenue earned per sold night. It comes up most often when the team needs a clean read on how much revenue each available night, unit, or add-on is producing.
The term keeps showing up because headline occupancy can look healthy while revenue quality is still weak, so the metric adds needed context. Owners and operators use these numbers to test whether pricing is improving total yield or just moving volume.
Use cases
Use Average Daily Rate to measure whether each available unit or night is earning enough.
Review Average Daily Rate when the team needs to compare pricing changes against total revenue quality, not just filled inventory.
Track Average Daily Rate so operations can show owners where top-line revenue is strong and where it is still thin.