Average daily rate of hotels in the U.S. 2001-2020
The average daily rate (ADR) of the United States hotel industry reached 103.25 U.S. dollars in 2020, reflecting a decrease of over 21 percent the previous year. The decrease can be attributed to the disruptions in travel and stay-at-home restrictions implemented due to the coronavirus pandemic. ADR in the U.S. peaked in 2019 with its highest figure in the past two decades.
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, but have since bounced back. 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.
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, but have since bounced back. 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.
