Luxury hotel ADR: how aquatic design increases the average daily rate

In the high-end hospitality market, the room itself is no longer the only factor that determines price. More and more, the perceived value of a hotel is shaped by the overall experience the property can offer: architecture, wellness, dining, personalised services and spaces that become an integral part of the stay.

In this scenario, pools and wellness areas are not simply additional amenities. A rooftop pool with a city view, a thermal centre integrated into the guest journey or an indoor pool designed for year-round use can directly contribute to the positioning of a luxury hotel and, as a result, to its ability to sustain a higher ADR.

This topic is especially relevant when viewed in the context of the global growth of wellness. According to the Global Wellness Institute, the wellness economy reached a new peak in 2024 and continues to grow faster than the global economy. For five-star hotels, this means that wellness, water and design are no longer only aesthetic elements, but strategic levers for hotel revenue management.

In summary: hotel ADR, or Average Daily Rate, measures the average daily rate of sold rooms. In the luxury segment, this KPI is increasingly linked to the perceived value of the overall guest experience. Rooftop pools, infinity pools, thermal centres and integrated wellness spaces can help strengthen a hotel’s positioning, increase its desirability and support higher room rates.

In this article, we look at three key questions: what hotel ADR means, why hotel aquatic design can influence the average daily rate and how to design aquatic spaces that increase the perceived value of a luxury property.

In the hotel industry, ADR stands for Average Daily Rate. It indicates the average revenue generated by rooms sold over a specific period and is one of the main KPIs used in hotel revenue management.

The hotel ADR formula is simple:

ADR = room revenue / rooms sold

If a hotel generates EUR 120,000 in room revenue in one night and sells 100 rooms, its ADR will be EUR 1,200. This value does not measure the hotel’s total occupancy. Instead, it shows the average price actually paid by guests for the rooms sold.

To better understand the meaning of hotel ADR, it is useful to distinguish it from other indicators such as RevPAR and GOPPAR. RevPAR, or Revenue per Available Room, measures revenue per available room and combines average rate with occupancy. It can be calculated by dividing room revenue by the total number of available rooms, or by multiplying ADR by occupancy rate. GOPPAR, or Gross Operating Profit per Available Room, introduces the theme of operational profitability because it also takes costs into account.

In the luxury segment, however, ADR has a particularly strategic role. A luxury hotel does not mainly compete on price or volume, but on its ability to justify a higher rate through perceived value. The question is not only “how many rooms can I sell?”, but “what experience can I offer to support a higher rate without compromising the brand’s positioning?”.

In a five-star hotel, increasing ADR does not depend only on room size or service quality. It also depends on the strength of the overall experience: design, view, privacy, wellness, exclusivity and memorability. This is where aquatic spaces can become a powerful lever.

Hotel aquatic space influences ADR because it helps turn a hospitality property into a destination. A design-led pool, a well-integrated spa or a wellness space with a strong architectural identity does not simply enrich the offer. It changes the way guests perceive the value of their stay.

The first level of impact is the guest experience. In a luxury hotel, water is often one of the most emotional elements of the project. A panoramic pool at sunset, an indoor pool with natural light, a thermal pathway designed as a restorative pause or a luxury hotel infinity pool overlooking the landscape can create moments that stay in the guest’s memory. These moments help justify a higher rate because they make the stay more distinctive, more desirable and harder to compare with a competitor’s offer.

The second level is digital visibility. Luxury hotel pools are among the most photographed and shared spaces in high-end properties. A hotel rooftop pool or an infinity pool can become a natural communication asset, generating spontaneous social media content, strengthening the recognition of the property and improving the quality of the images used across OTAs, search engines and owned channels. In a context where hotel selection often takes place through images, reviews and quick comparisons, the visual impact of aquatic spaces can directly influence the likelihood of booking.

The third level is positioning. Aquatic spaces allow a hotel to speak to different premium guest segments. For some guests, the pool is a place of relaxation and privacy. For others, it is a scenic and social element. For the MICE and luxury business segments, a spa or wellness centre can become part of a broader offer, helping extend the stay, enrich corporate programmes or increase in-house spending.

As highlighted by several analyses on luxury hospitality, including those by JLL and Skift, high-perceived-value experiences can strengthen the positioning of high-end hotels, but they need to be designed with attention to the operating model and overall profitability. For this reason, aquatic areas should not be seen as a simple aesthetic features, but as a strategic decision to be integrated into the hotel’s commercial vision.

In this sense, an aquatic space for hospitality should not be viewed as a purely architectural choice. It is a positioning choice. A well-conceived aquatic project helps the hotel differentiate itself, reinforces the perception of exclusivity and creates the conditions to sustain a higher ADR over time.

Not all pools generate the same type of value. The impact on ADR depends on the hotel’s context, target guests, seasonality, destination and revenue objectives. For this reason, discussing aquatic design first means understanding the strategic role the space needs to play.

Infinity pools and rooftop pools have a strong impact on perceived value. They are particularly effective in urban hotels, panoramic resorts and properties where the view is a core part of the experience. A suspended rooftop pool or an infinity-edge pool overlooking the landscape creates an iconic image of the hotel, increases the property’s desirability and can help justify premium rates, especially for rooms and suites that are visually or functionally connected to the aquatic space.

In these cases, the value is not only in the use of the pool, but in its ability to become a symbol of the hotel. The pool appears in official photography, guest-generated content, reviews and the overall image of the destination. For properties with weight constraints, limited space or elevated locations, solutions such as suspended and rooftop pools can transform complex areas into high-perceived-value assets.

Thermal and wellness centres have a different impact. Rather than acting only on the visual dimension, they contribute to the length and depth of the guest experience. A luxury hotel spa can attract guests looking for restoration, treatments, relaxation and personalised wellness journeys. This type of space can support longer stays, stronger guest loyalty and increased ancillary spending, especially when wellness is integrated consistently with rooms, dining, fitness and experiential programmes.

For the MICE segment, a well-designed wellness centre can also become a differentiating element in high-end business stays. After meetings, events and conferences, access to aquatic pathways, spa facilities or relaxation areas strengthens the overall appeal of the property. Integrated thermal centres can therefore contribute not only to the room rate, but also to the development of a more complete offer that is less dependent on the room alone.

Design-led indoor pools offer another advantage: operational continuity. Unlike outdoor pools, which are affected by seasonality and weather conditions, an indoor pool can be used throughout the year. This is particularly important for urban hotels, mountain destinations, business properties and resorts that want to maintain a consistent wellness offer even during less favourable months.

A well-designed indoor pool is not just a functional solution. When integrated with natural light, materials aligned with the hotel concept and a recognisable architectural atmosphere, it can become a central part of the experience. In terms of ADR, its value is linked to the ability to offer a stable premium benefit that is not limited to the summer season.

Finally, there are hybrid aquatic spaces designed to combine aesthetics, wellness and flexibility. In a contemporary luxury hotel, the pool can be a relaxation area in the morning, a scenic space in the afternoon and a backdrop for private events in the evening. This ability to adapt to different moments of the day increases the efficiency of the space and strengthens the return on investment.

A concrete example of how aquatic design can contribute to the perceived value of a luxury property is the St. Regis project in San Francisco.

In a five-star hotel located in the heart of a major city, every intervention needs to take into account architectural, operational and positioning constraints. In the case of The St. Regis Hotel in San Francisco, the pool was not simply an amenity to be renovated, but an element of the guest experience to be preserved and enhanced within a high-rise context, where weight, access and business continuity are decisive factors.

The solution adopted by Myrtha made it possible to intervene on the pool through a modular RenovAction system, designed to renovate existing structures with timing and methods compatible with the needs of high-end hospitality. The objective was not purely technical. It was to maintain an aesthetic standard aligned with the hotel’s identity, improve the quality of the space and preserve continuity in the guest experience.

In a luxury context, this type of intervention has a value that goes beyond the pool itself. A well-designed aquatic facility contributes to the overall perception of the property, reinforces the brand’s promise of quality and supports the idea that every area of the hotel, including those that are more complex to renovate, is part of a carefully curated experience.

For luxury hotels, this is an essential point: aquatic design is not only about building a new pool. It is also about updating and enhancing existing spaces without compromising operations, image or service standards.

In the luxury segment, a pool should not be assessed only as a construction investment or a cost item. If designed consistently with the hotel’s positioning, it can become a revenue asset that contributes to ADR, reputation, guest loyalty and the overall value of the property.

Of course, the return of an aquatic space depends on the quality of the project, operational management and integration with the hotel’s business model. A visually impressive pool that is difficult to use, a spa that is not aligned with the target audience or a wellness space that is hard to maintain can generate costs without creating real value. By contrast, aquatic design planned from the beginning around guests, rates, seasonality, brand and operations can become one of the most effective elements in supporting premium positioning.

For a five-star hotel, increasing ADR does not simply mean raising prices. It means creating the conditions for guests to recognise, desire and accept a higher level of value. Water, when designed with architectural vision and hospitality strategy, can play a decisive role in this process.

Infinity pools, rooftop pools, thermal centres, indoor pools and integrated wellness spaces are not just additional services. They are tools to build experiences, differentiate the offer and strengthen the hotel’s perceived value over time.

To transform a pool into a strategic asset for your hotel, contact Myrtha Pools and discover how to develop an aquatic space designed for luxury hospitality.

Sources and further reading:

• Global Wellness Institute, Global Wellness Economy Monitor 2025
• Global Wellness Institute, Wellness Economy Monitor 2024
• Global Wellness Institute, Wellness Economy Statistics & Facts
• JLL, Prestige restaurants are a key ingredient in high-end hotel success
• Skift, Wellness in Hotels: An ROI Reality Check