ADR (Average Daily Rate)
ADR (Average Daily Rate) is the average nightly revenue earned per occupied room or rental unit, calculated by dividing total rental income by the number of nights booked. Combined with occupancy rate, ADR determines total rental performance for vacation rental investments.
By Daniel Ortega · Last reviewed 6 November 2026
How it works
For vacation rental owners in Quintana Roo, ADR measures pricing power: Tulum properties averaged $125 per booked night in August 2026, Cancun $129, Playa del Carmen $95 to $140, and Cozumel MX$2,931 in September 2026 according to AirROI. Larger or premium units command higher rates—Cancun Hotel Zone 4-bedroom apartments averaged $275 in August 2026. ADR alone does not reflect total revenue; a property with $200 ADR but 30 percent occupancy earns less than one with $150 ADR and 60 percent occupancy. Multiplying ADR by occupancy rate yields RevPAR (revenue per available night), the true performance measure. For foreign owners, remember that non-resident rental income faces 25 percent ISR on gross income and 16 percent IVA on furnished rentals, reducing net returns.