When ADR rises, first examine the room mix
A hotel’s average daily rate can change even when each room type keeps the same price. A larger share of higher-priced room nights raises the total average. Therefore a rise does not automatically mean every room sold at a higher price. We compare two entirely fictional periods: standard room nights at TRY 2,000, suite nights at TRY 3,000 and 10 sold room nights in each period. These are arithmetic assumptions, not market prices, property recommendations or Stayax commercial terms. Mews’s ADR explanation and CoStar’s STR reporting guidance, opened on 5 October 2026, support the definition and scope. The review steps are our editorial proposal.
1. Use revenue and room nights from the same period
Mews defines ADR as room revenue divided by rooms sold; for this multi-night example, our denominator is sold room nights. Match period boundaries, currency and revenue scope. CoStar’s STR guidance distinguishes room revenue from other income. We use room sales only, excluding breakfast, other services, taxes and costs. We assume no complimentary nights, cancellations, refunds or out-of-service rooms. A real report needs separate checks for those cases. Recording revenue in one period and the room night in another changes the ratio. Define the measure before comparing; a simple formula does not guarantee consistent input.
2. Period A: eight standard and two suite nights
In fictional period A, sell eight standard room nights and two suite nights. Standard revenue is 8 × 2,000 = TRY 16,000. Suite revenue is 2 × 3,000 = TRY 6,000. Total room revenue is TRY 22,000 across 10 sold room nights, so ADR is 22,000 / 10 = TRY 2,200. Simply averaging the two prices would give TRY 2,500, but the categories did not sell equal numbers of nights. Standard nights dominate this period, bringing the total average closer to the standard rate. Check category totals before the overall total; guests and reservations are different measures.
3. Period B: same prices, different mix
In fictional period B, sell five standard nights and five suite nights, still at TRY 2,000 and TRY 3,000. Standard revenue is TRY 10,000, suite revenue TRY 15,000 and total revenue TRY 25,000. Divide by the same 10 room nights: ADR is TRY 2,500, an increase of TRY 300 without changing either category’s price. Only the sales mix changed. Total revenue also rises by TRY 3,000 because we held sold nights constant. If volume changes in real operations, the result can differ. This illustrates one variable; it is not a rule that suite sales always increase revenue.
4. Compare the overall average with each category
After comparing overall ADR, repeat the comparison within each room type. Here standard ADR remains TRY 2,000 in both periods and suite ADR remains TRY 3,000. The overall improvement therefore comes from mix, not a within-category price increase. Ask three questions: did total sold nights change, did each category’s average change, and did the category distribution change? This is a general report-reading method, not a pricing system or automatic decision algorithm. Check that category names and scope remain consistent across periods. Adding a new room group to an old category can change comparability.
5. What does this calculation not establish?
In this example, ADR measures average revenue per sold room night. It does not alone describe capacity utilization, profit or guest satisfaction. Because capacity, costs and other income are outside our calculation, we make no occupancy, RevPAR or profit conclusion. These fictional amounts are not target prices for another property. A higher average may coincide with fewer nights sold; examine total room revenue as well. Cancellations or refunds require a scope review. State which question the calculation answers, and do not claim unmeasured outcomes. Keep the next necessary check visible.
A short comparison checklist for the weekly meeting
Prepare two periods of equal length and consistently defined categories for the weekly meeting. Show sold room nights, room revenue and ADR by category, then check totals. Note changes to currency, period boundaries or revenue scope. Read the category result and volume alongside total ADR. Replace a broad statement such as prices rose with the observed change: in our fictional example prices stayed constant, more suite nights sold and overall ADR increased by TRY 300. Real operational review belongs within the authorized team, without turning records into marketing examples. Bring these general reporting questions to a Stayax discussion using the public solutions and PMS checklist pages.