Find the room occupancy needed to cover a hotel’s period costs at a given average daily rate. The model subtracts variable cost per occupied room from ADR, divides fixed costs by that contribution, and compares the required room nights with available inventory. It also shows the gap to your forecast. Use one consistent period for available rooms, fixed costs, and forecast room nights.
Available room nights = rooms × nights. Contribution per occupied room = ADR − variable cost. Break-even room nights = fixed costs ÷ contribution.
The estimate treats ADR and variable room cost as averages and excludes revenue from food, parking, resort fees, and other departments.
Keep the reporting period and the treatment of taxes, fees, refunds, and complimentary service consistent across every input.
With 120 rooms for 30 nights, $165 ADR, $38 variable cost, and $285,000 fixed cost, break-even is 2,245 room nights after rounding up, or 62.36% occupancy.
No. This model uses room ADR and room-level variable cost unless you deliberately incorporate other contribution into those inputs.
Any period works if every input covers the same dates and the same operation.
Yes where the form allows it. Percentage results that require revenue will be shown as unavailable rather than divided by zero.
Only include them when they are consistently included in both the revenue and cost figures you enter.
Actual results can differ because of overtime, refunds, complimentary service, waste, discounts, or costs omitted from the inputs.
| Output | Meaning |
|---|---|
| Break-even occupancy | Primary operating result |
| Break-even room nights | Supporting decision metric |
| Contribution per room | Supporting decision metric |
| Forecast cushion | Supporting decision metric |