What does ADR stand for in real estate finance?

In real estate finance, ADR stands for Average Daily Rate. This term is commonly used in the hospitality industry to measure the average revenue generated per rented room per day. It provides valuable insight into the earning potential of a property, especially in hotels and short-term rental markets. By calculating ADR, property owners and investors can assess pricing strategies, compare operational performance over time, and evaluate market trends.

Understanding ADR is important for real estate finance professionals since it can impact revenue management decisions, investment strategies, and overall property valuation. Supervising trends in ADR helps stakeholders make informed decisions regarding pricing, marketing efforts, and competitive positioning within their market.