Hotel Break-Even Occupancy Rate Calculator

Find the occupancy threshold required to cover fixed costs in a hotel period. The model uses ADR, variable room cost, available room nights, and optional ancillary revenue per occupied room.

Period fixed costs such as payroll overhead, lease, insurance, and utilities baseline.
Average room revenue per occupied room night.
Housekeeping, amenities, laundry, and other occupancy-driven costs.
Rooms available multiplied by days in the selected period.
Defaults to $0.00 if blank. Include parking or ancillary net revenue per occupied room.

Educational estimate. Validate assumptions with property accounting and management reporting policies.

Examples

  • $1,850,000 fixed costs, ADR $182, variable cost $46, 54,750 room nights, ancillary blank ⇒ Break-even occupancy: 24.83%; Required occupied room nights: 13,592.65.
  • $2,400,000 fixed, ADR $210, variable $62, 73,000 room nights, ancillary $18 ⇒ Break-even occupancy: 19.50%; Required occupied room nights: 14,233.13.

FAQ

Should ADR be gross or net of OTA fees?

Use ADR on the same net basis as your variable cost assumptions to keep contribution consistent.

Can I use monthly or annual data?

Yes. The method works for any period if all inputs use the same period boundary.

What if break-even occupancy is above 100%?

It indicates the current cost and pricing structure cannot break even at full capacity in that period.

Additional Information

  • Break-even occupied room nights equal fixed costs divided by contribution per occupied room.
  • Break-even occupancy equals required occupied room nights divided by available room nights.
  • Use one reporting period and ensure ADR and variable costs match the same period.
  • The model assumes linear variable costs and constant ADR across occupancy levels.

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