Money & Performance
Break-Even Occupancy
The share of nights you must sell just to not lose money.
Why you care
It is the number that decides whether you sleep. Everything above it is profit; everything below it comes out of your salary.
Worked example
Fixed and variable costs of $58,000 a year, $240 ADR, $34 of variable cost per night sold. You need $58,000 ÷ ($240 − $34) = 282 nights, which is 77% occupancy. If your market runs 65%, this deal does not work.
Taught in Break-Even Occupancy