InvestmentUpdated March 1, 2026· 3 min read
ADR (Average Daily Rate)
Also known as: Average Daily Rate
What is ADR (Average Daily Rate)?
ADR (Average Daily Rate) is the average nightly rental income earned per occupied room, calculated by dividing total rental revenue by the number of nights booked. In Dubai short-term-rental analysis, ADR is one of two core inputs — alongside occupancy — used to model annual yield.
Definition
ADR excludes vacant nights and is expressed in local currency (AED). It is combined with occupancy rate to compute RevPAR (Revenue per Available Room), the standard hospitality performance metric.
Key Facts
- 1Formula: total revenue ÷ nights booked.
- 2Marina and Downtown typically post Dubai's highest ADRs.
Frequently Asked Questions
How is ADR different from RevPAR?
+
ADR only counts occupied nights; RevPAR spreads revenue across all available nights, factoring in vacancy.
📚 Deep Dive — Related Guides
References & Further Reading
- Dubai Land Department (DLD) — official transaction & title records.
- Real Estate Regulatory Agency (RERA) — Ejari, Mollak & rental index.
- Department of Economy and Tourism (DET) — Holiday Home permits.
- Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) — visa rules.
This entry is editorial and informational. It does not constitute legal, financial or tax advice.