Understanding Occupancy Rate and ADR
Understand hotel occupancy rate and average daily rate, what each metric shows and how Maldives properties can review them together.
Occupancy and ADR describe different parts of room performance. Reading them together is more useful than treating either figure as a complete result.
Occupancy rate
Occupancy commonly compares rooms sold with rooms available in a period. Confirm how out-of-order or blocked rooms are treated in your reporting setup.
Average daily rate
ADR commonly divides room revenue by rooms sold. The result depends on which revenue and room statuses the report includes.
Read the combination
Higher occupancy with a lower ADR may produce a different revenue outcome than fewer rooms sold at a higher ADR. Consider season, property type, channel cost and stay pattern.
Protect data quality
Incorrect room status, missing cancellations or charges posted to the wrong period can distort both measures. Review source records before acting.
Frequently asked questions
Is high occupancy always best?
Not by itself. Rate, distribution cost, operating capacity and guest experience also matter.
Why might ADR differ between systems?
Systems may use different revenue categories, room statuses, dates or tax treatment. Compare definitions before comparing values.