What does the acronym ADR commonly refer to in rental metrics?

The acronym ADR in rental metrics stands for Average Daily Rate. This term is particularly significant in the hospitality and rental industry, as it provides insights into the revenue-generating capability of a property. ADR is calculated by dividing the total rental income by the number of rental days, offering a clear picture of how much income is being earned on average for each day the rental unit is occupied.

Average Daily Rate is vital for property owners and managers as it helps assess performance, set pricing strategies, and compare with competitors in the market. Understanding ADR can assist in optimizing revenue management, identifying trends, and making informed decisions regarding rates and occupancy strategies. Other terms such as Average Daily Return, Average Days Reserved, and Average Discount Rate do not reflect the direct daily income metrics related to rentals, which is why they do not represent the correct definition of ADR in this context.