Available Room Nights
Room count multiplied by days open establishes the room inventory available during the entered period.
The same fixed cost requires more RevPAR when fewer room nights are available to carry it.
Enter the hotel’s room inventory, operating-cost assumptions, ADR, and occupancy to see the rate-and-demand combinations required to cover cost and the current RevPAR cushion or shortfall.
What the break-even curve shows
Break-even depends on how many room nights are available, how much each occupied room contributes after variable cost, and how much fixed operating cost that contribution must cover.
Operating sequence
Room count multiplied by days open establishes the room inventory available during the entered period.
The same fixed cost requires more RevPAR when fewer room nights are available to carry it.
ADR less variable cost per occupied room determines the contribution produced by each sold room.
If ADR approaches variable cost, each occupied room contributes less toward fixed operating cost.
At the entered ADR, the tool calculates the occupancy required to cover fixed cost.
At the entered occupancy, it calculates the ADR required to reach the same point.
Current RevPAR is ADR multiplied by occupancy.
The curve converts the entered cost structure into the RevPAR required at the current occupancy, then measures the cushion or shortfall.
The annual dollar effect equals the RevPAR cushion or shortfall multiplied by available room nights.
Select a card to read the operating context.
Fixed cost is the amount the occupied-room contribution must cover during the entered period.
A larger fixed-cost base moves the break-even curve upward and increases the rate or occupancy required.
Variable cost is carried only by occupied rooms in this calculation.
Higher variable cost reduces the contribution retained from each occupied room and raises the break-even requirement.
Room count and days open determine the available room nights carrying the entered fixed cost.
Use the room inventory that was actually available for the same period as the cost assumptions.
Occupancy determines how many available room nights generate contribution.
At lower occupancy, each occupied room must carry more fixed cost, which raises the ADR required to break even.
ADR establishes the room revenue produced by each occupied room before the entered variable cost is deducted.
A higher contribution per occupied room reduces the occupancy required to cover the same fixed cost.
Use fixed and variable cost assumptions that refer to the same operating period and the same room-revenue scope.
Define management fees, property taxes, insurance, reserves, owner charges, and other items consistently before using the result as an operating threshold.
