Occupancy
Calculate occupancy and test the revenue and profit effect of changes.
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.
- 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
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Export
Live Results
Occupancy
71.92%
RevPAR
£61
Rooms Revenue
£1,963,500
Extra Profit at Target
£123,077