Hotels

Occupancy

Calculate occupancy and test the revenue and profit effect of changes.

Beginner

Introduction

Who this is for: Hotel operators and investors analysing volume performance.

Why it matters: Occupancy is only half the story. Extra occupancy brings variable cost with it, so a point of occupancy is worth less than a point of rate — which is why disciplined operators protect rate first.

Typical scenario: An operator deciding whether a promotion that lifts occupancy 5 points is worth the discount required.

Common mistakes:
  • Treating occupancy gains as pure profit — housekeeping and amenities scale with rooms sold.
  • Using peak-season occupancy as an annual figure.
  • Excluding out-of-order rooms from available room nights.

Inputs

Capacity

keys

keys

room nights

Economics

£
£
%

Analysis

23,100 rooms sold against 32,120 available gives 71.9% occupancy and £61.13 RevPAR. Reaching 78% needs 1,954 more room nights, worth £123,077 in contribution after variable costs.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

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Sensitivity Analysis

Sensitivity

Adjust the variables below to stress-test this scenario. Results update instantly.

23,100
046200
£85
£0£170
78%
0100

Export

Live Results

Occupancy

71.92%

RevPAR

£61

Rooms Revenue

£1,963,500

Extra Profit at Target

£123,077

2 out-of-order rooms reduce available room nights by 730. Occupancy is calculated on available rooms, which is the correct basis.
Available Room Nights32120.00x
Contribution per Room Sold£63
Extra Rooms to Hit Target1953.60x