Hotel Break-Even Occupancy Calculator
Estimate occupancy required for room contribution to cover fixed annual costs.
Calculated directly from the assumptions shown.
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Get the model · €79 incl. VATHow the Hotel Break-Even Occupancy calculation works
Break-even occupancy = fixed costs ÷ [rooms × 365 × (ADR − variable cost per occupied room)].
Example calculation
A 100-room hotel with €2.5m annual fixed costs, €180 ADR and €35 variable cost per occupied room breaks even at 47.24% occupancy, assuming 365 available days.
How professionals use the result
Use this as a room-department screening metric. Include contribution from F&B and other departments separately when relevant.
Common mistakes
- Using total operating cost as fixed cost
- Ignoring variable room cost
- Assuming every room is available all year
- Treating accounting break-even as debt-service break-even
Hotel Break-Even Occupancy Calculator FAQs
What does the Hotel Break-Even Occupancy calculator measure?
Estimate occupancy required for room contribution to cover fixed annual costs.
What formula does the Hotel Break-Even Occupancy calculator use?
Break-even occupancy = fixed costs ÷ [rooms × 365 × (ADR − variable cost per occupied room)].
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use this as a room-department screening metric. Include contribution from F&B and other departments separately when relevant.
Which mistakes are most common?
Using total operating cost as fixed cost; Ignoring variable room cost; Assuming every room is available all year; Treating accounting break-even as debt-service break-even.