Revenue per room: Difference between revisions

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We have 100 rooms times 365 days, so a capacity of 20,748 per year. <br>
We have 100 rooms times 365 days, so a capacity of 20,748 per year. <br>
The total of revenues is as you take over € 2,866,902 <br>
The total of revenues is as you take over € 2,866,902 <br>
So per night an average revenue of € 138.17 on all available rooms. <br><br>
So per night an average revenue of € 138.17 on all available rooms. <br>


Let's look at the (total) profit Per Available Room. <br>
Let's look at the (total) profit Per Available Room. <br>
We have 100 rooms times 365 days, so a capacity of 20,748 per year. <br>
We have 100 rooms times 365 days, so a capacity of 20,748 per year. <br>
The total of profit is as you take over € 436,307 <br>
The total of profit is as you take over € 436,307 <br>
So per night an average profit of € 21.02 on all available rooms.<br><br>
So per night an average profit of € 21.02 on all available rooms.<br>


If you want to read more on this, check [http://www.investinganswers.com/financial-dictionary/ratio-analysis/revenue-available-room-revpar-807 this page].
If you want to read more on this, check [http://www.investinganswers.com/financial-dictionary/ratio-analysis/revenue-available-room-revpar-807 this page].
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We have 100 rooms times 365 days, so a capacity of 20,748 per year and 50% occupied, so 10,374 occupied rooms<br>
We have 100 rooms times 365 days, so a capacity of 20,748 per year and 50% occupied, so 10,374 occupied rooms<br>
The total of  revenues is as you take over  €  2,866,902 <br>
The total of  revenues is as you take over  €  2,866,902 <br>
So per occupied night an average revenue of € 276.35 per occupied room. <br><br>
So per occupied night an average revenue of € 276.35 per occupied room. <br>


Let's look at the (total) profit Per Occupied Room. <br>
Let's look at the (total) profit Per Occupied Room. <br>
We have 100 rooms times 365 days, so a capacity of 20.748 per year and 50% occupied, so 10,374 occupied rooms. <br>
We have 100 rooms times 365 days, so a capacity of 20.748 per year and 50% occupied, so 10,374 occupied rooms. <br>
The total of profit is as you take over  € 436,307 <br>
The total of profit is as you take over  € 436,307 <br>
So per night an average profit of € 42.05 per occupied room.<br><br>
So per night an average profit of € 42.05 per occupied room.<br>


If you want to read more on this, check [http://www.investopedia.com/terms/r/revpor.asp this page].
If you want to read more on this, check [http://www.investopedia.com/terms/r/revpor.asp this page].
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So as a conclusion of these calculation: if you occupy one additional room an indication of the additional revenues could be 365 x 1 room x € 276.35 so € 100,867. And an indication of the additional profit: 365 x 1 room x € 42.05 so € 15,348. <br>
So as a conclusion of these calculation: if you occupy one additional room an indication of the additional revenues could be 365 x 1 room x € 276.35 so € 100,867. And an indication of the additional profit: 365 x 1 room x € 42.05 so € 15,348. <br>
To be more specific in this look at the file on [[occupancy rate]] and look for the difference between fixed [[costs]] and variable costs.
To be more specific in this look at the file on [[occupancy rate]] and look for the difference between fixed [[costs]] and variable costs.


== Relationship with net profit ==  __NOEDITSECTION__  
== Relationship with net profit ==  __NOEDITSECTION__  

Revision as of 16:06, 7 March 2018

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Revenues

If we look at the total of the revenues as explained in the operating review this has been € 2.866.902 in the history. In the same year the occupancy rate of the rooms was 50%. This means we can make the next ratio's

  • RevPAR

So we look at the (total) revenues Per Available Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year.
The total of revenues is as you take over € 2,866,902
So per night an average revenue of € 138.17 on all available rooms.

Let's look at the (total) profit Per Available Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year.
The total of profit is as you take over € 436,307
So per night an average profit of € 21.02 on all available rooms.

If you want to read more on this, check this page.

  • RevPOR

So we look at the (total) revenues Per Occupied Room.
We have 100 rooms times 365 days, so a capacity of 20,748 per year and 50% occupied, so 10,374 occupied rooms
The total of revenues is as you take over € 2,866,902
So per occupied night an average revenue of € 276.35 per occupied room.

Let's look at the (total) profit Per Occupied Room.
We have 100 rooms times 365 days, so a capacity of 20.748 per year and 50% occupied, so 10,374 occupied rooms.
The total of profit is as you take over € 436,307
So per night an average profit of € 42.05 per occupied room.

If you want to read more on this, check this page.

  • Example

So as a conclusion of these calculation: if you occupy one additional room an indication of the additional revenues could be 365 x 1 room x € 276.35 so € 100,867. And an indication of the additional profit: 365 x 1 room x € 42.05 so € 15,348.
To be more specific in this look at the file on occupancy rate and look for the difference between fixed costs and variable costs.

Relationship with net profit

Of course there is a strong relationship with the Net profit, costs made in your decisions and the occupancy rate.



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