Hotel Occupancy Profit Calculator - RevPAR & ADR Analysis Tool
Free hotel profit calculator to measure occupancy revenue, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and net profit margins. Calculate hotel profitability with comprehensive financial analysis including room revenue, ancillary income, and operating costs. Get optimization recommendations to improve occupancy rates, pricing strategy, and profit margins.
Last updated: October 20, 2025
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Number of available rooms in the hotel
Percentage of rooms occupied on average
Average price per room per night
F&B, spa, parking, and other ancillary revenue
Staff, utilities, maintenance, supplies, etc.
Profitability: Excellent
35.0%
Profit Margin
Monthly Profit
$147,656.25
RevPAR
$112.50
per room/day
Financial Breakdown
Total Rooms: 100 rooms
Occupancy Rate: 75%
Average Daily Rate (ADR): $150
Occupied Rooms: 75.0 rooms/day
Room Revenue: $337,500/month
Other Revenue (25%): $84,375/month
Total Revenue: $421,875/month
Operating Costs (65%): $274,218.75/month
Net Profit: $147,656.25/month
Profit Margin: 35.0%
RevPAR: $112.50/room/day
Revenue Optimization Recommendations
- •
Optimize pricing with dynamic rate strategies
- •
Increase occupancy through targeted marketing
- •
Control operating costs for better margins
Hotel Performance Metrics & Calculations
Formula
ADR × Occupancy Rate
Primary metric combining pricing and occupancy efficiency. Industry standard for hotel performance
Formula
Room Revenue ÷ Rooms Sold
Measures average room price achieved. Higher ADR with maintained occupancy increases profitability
Formula
Rooms Sold ÷ Total Rooms × 100%
Measures utilization efficiency. Target 65-75% annual average, 80-95% during peak seasons
Formula
Net Profit ÷ Total Revenue × 100%
Final profitability metric after all costs. Target 20-35% for healthy operations
GOP Margin Target
25-45% of revenue
Operating profit before fixed costs. Key metric for operational efficiency management
Revenue lift potential
15-30% increase
Optimize rates based on demand, competition, and booking patterns for maximum revenue
Example Hotel Profit Calculation
100 rooms, 75% occupancy, $150 ADR, 25% ancillary revenue, 65% operating costs:
Monthly Profit
$147,656.25
Profit Margin
35.0%
RevPAR
$112.50
How Our Hotel Profit Calculator Works
Our hotel profit calculator uses industry-standard hospitality metrics to analyze profitability. The calculator combines occupancy rates, average daily rates (ADR), and RevPAR calculations with operating cost analysis to determine net profit margins and identify optimization opportunities.
Hotel Profit Calculation Formula
Room Revenue = Rooms × Occupancy % × ADR × DaysTotal Revenue = Room Revenue + Ancillary RevenueNet Profit = Total Revenue - Operating CostsRevPAR = Total Room Revenue ÷ (Total Rooms × Days)Profit Margin = (Net Profit ÷ Total Revenue) × 100%RevPAR (Revenue Per Available Room) is the key performance indicator combining both occupancy efficiency and pricing effectiveness. Industry benchmark RevPAR ranges from $40 for budget hotels to $250+ for luxury properties.
Understanding Hotel Profitability Metrics
Hotel profitability depends on optimizing three key metrics: occupancy rate (room utilization), ADR (pricing), and operating efficiency (cost management). Successful hotels balance these factors - maximizing occupancy while maintaining rates requires dynamic pricing strategies, while controlling costs without sacrificing service quality requires operational excellence. The sweet spot typically involves 70-80% occupancy with premium ADR and operating costs below 65% of revenue.
- RevPAR combines occupancy and ADR into one performance metric
- Ancillary revenue (F&B, spa, parking) adds 20-40% to room revenue
- Operating costs typically range 60-75% of total revenue
- Dynamic pricing can increase revenue 15-30% without additional costs
- Target profit margins: 20-35% for sustainable hotel operations
- Seasonal variations require flexible pricing and cost management strategies
Sources & References
- STR (Smith Travel Research) - Global hotel performance benchmarking dataIndustry-standard source for occupancy, ADR, and RevPAR benchmarks
- American Hotel & Lodging Association - Hotel industry research and best practicesComprehensive data on hotel operating costs and profit margins
- Hotel Business Review - Hospitality industry financial analysisDetailed breakdowns of revenue sources and cost structures
Need help with other hospitality calculations? Check out our event ROI calculator and campaign ROI calculator.
Get Custom Calculator for Your PropertyHotel Profit Calculator Examples
Property Details:
- Total Rooms: 150 rooms
- Occupancy Rate: 72%
- Average Daily Rate: $135
- Ancillary Revenue: 30% of room revenue
- Operating Costs: 62% of total revenue
Monthly Performance:
Optimization Opportunity
By implementing dynamic pricing to increase ADR by 10% during peak periods (maintaining occupancy at 72%), monthly revenue could increase by $43,740 (room revenue) + $13,122 (ancillary) = $56,862. With fixed operating cost structure, this would increase net profit by approximately $35,254/month (16% improvement), bringing annual profit to approximately $3M.
Luxury Hotel Example
80 rooms, 68% occupancy, $350 ADR, 35% ancillary, 58% costs
Monthly: $753,900 revenue, $316,638 profit (42% margin), RevPAR: $238/day
Budget Hotel Example
120 rooms, 82% occupancy, $89 ADR, 15% ancillary, 68% costs
Monthly: $357,138 revenue, $114,284 profit (32% margin), RevPAR: $73/day
Frequently Asked Questions
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