Hotel Break-Even Occupancy Calculator

This calculator assumes one flat Average Daily Rate for the whole month, so if your property runs noticeably higher weekend rates and lower midweek rates, enter a demand-weighted average ADR rather than a simple average of the two rate tiers -- weighting toward whichever nights make up more of your typical room-night mix keeps Break-Even Occupancy closer to what the property actually experiences. Running the numbers twice, once at each rate tier, can also show how much cushion the higher-rate nights are really buying you.

Monthly Room Nights is built from Total Rooms multiplied by a flat 30, which keeps the math simple and comparable across a short February and a full 31-day July, but it does mean the figure runs slightly conservative in longer months and slightly generous in shorter ones. For a more precise month-by-month break-even, swap in that specific month's actual day count wherever the calculator's own 30-day assumption is baked in.

Monthly Fixed Costs, since Break-Even Revenue scales directly and proportionally with it -- doubling your fixed costs roughly doubles the revenue needed to cover them. ADR and Variable Cost per Room Night both have smaller, opposing effects through their influence on how many room nights are needed to hit that revenue.

Margin of Safety compares room nights at an assumed 75% current occupancy against the break-even room-night count, and Total Rooms scales both of those room-night figures directly. ADR and Monthly Fixed Costs also move it, but only through the break-even side of that comparison, not both sides at once.

No. Annual Break Even Room Nights is calculated purely from annual Fixed Costs divided by Contribution per Room (ADR minus Variable Cost per Room Night) -- Total Rooms never enters that formula, unlike Break-Even Occupancy or Margin of Safety, which do depend on property size.