ADR Calculator: Average Daily Rate
Find the average rate you really earned per room night, with complimentary rooms and GST handled correctly.
What ADR means
ADR (average daily rate) is the average room rate you actually achieved for each room night sold. It is the clearest measure of your pricing power: are guests paying what your rooms are worth, or are discounts, OTA deals and walk-in bargaining pulling the average down? Your published rate card and your real ADR are often very different numbers.
Worked example with GST
A hotel sells 310 room nights in a month, 10 of them complimentary, and its PMS shows ₹9,45,000 collected for rooms including 5% GST.
- Net room revenue = ₹9,45,000 ÷ 1.05 = ₹9,00,000
- ADR on paid rooms = ₹9,00,000 ÷ 300 = ₹3,000
- ADR including complimentary rooms = ₹9,00,000 ÷ 310 = ₹2,903
- ADR including GST = ₹3,150
GST and ADR in India
From 22 September 2025, room tariffs up to ₹7,500 per room per night attract 5% GST (without input tax credit) and tariffs above ₹7,500 attract 18% (with input tax credit). Always report ADR excluding GST. If you only have gross collections, this calculator removes GST for you. Because GST is charged per room night, hotels selling rooms on both sides of ₹7,500 should calculate tax on each bill — use the hotel GST calculator for exact invoice amounts.
Complimentary rooms
Most hotels exclude complimentary rooms from ADR so the figure shows what paying guests pay. Whichever method you choose, use it every month so the trend is honest. Track the number of complimentary nights too; they still cost you linen, power and housekeeping.
How to lift ADR
- Price by demand: weekends, festivals and local events deserve higher rates.
- Upsell room categories at booking and at check-in.
- Sell packages with breakfast or transfers instead of cutting the room rate.
- Check that higher ADR has not hurt occupancy too much with the RevPAR calculator.
Frequently asked questions
Should ADR include GST?
No. ADR is normally reported on room revenue excluding GST, because GST is collected for the government. This calculator shows ADR both with and without GST for reference.
Do complimentary rooms count in ADR?
Most hotels exclude complimentary room nights so ADR reflects what paying guests pay. Choose one method and use it consistently every month.
What is the difference between ADR and room rate?
The room rate is the price you publish. ADR is the average you actually achieved after discounts, OTA deals, corporate rates and packages across all rooms sold.
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