Average daily rate of hotels in the U.S. 2001-2021
What is average daily rate (ADR)?
Average daily rate is a key performance indicator of the hospitality industry. It shows the average room rental price per day in either a specific hotel (independent/chain), or in this case the average room rental price per day of many hotels within the U.S. Other useful KPI’s that are used in the lodging industry are the occupancy rate and revenue per available room (RevPAR).
U.S. hotel industry trends
It is not just ADR that shows growth in the U.S. lodging industry – occupancy and RevPAR do as well. They all encountered a dip in 2009, likely due to the global economic recession occurring at the time. Hotel occupancy rose year-on-year and increased from 54.6 percent during the recession to 66.2 percent in 2018. Equally, RevPAR grew by over 60 percent between the recession and 2018. However, due to the COVID-19 pandemic, occupancy and RevPAR of hotels in the U.S. drastically decreased in 2020, reflecting even lower year-over-year decrease compared to its performance in 2009.