Revenue per room
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 following ratio's. These ratios are based on assumptions and give an indication. They are not entirely correct. In accounting, no distinction has so far been made between the revenues (and costs) of the three groups of income: rooms, food & beverage and banqueting and other revenues.
RevPAR
So we look at the (total) revenues Per Available Room, the so-called RevPAR. This is a metric used in the hospitality industry to measure hotel performance. It can be measured in many different ways: we will use dividing the hotel's total room revenue by the total number of available rooms in the period being measured.
We have 100 rooms times 365 (we calculate with 364) days, so a capacity of 36,400 per year.
The total of revenues is as you take over, just on room rental € 1,949,220
So per room night an average revenue of € 53.55 on all available rooms.
Let's look at the (total) profit Per Available Room.
We have 100 rooms times 365 days (we calculate with 364), so a capacity of 36,400 per year.
The total profit, as you take over is € 436,307 (on all operations).
So per room night an average profit of € 11.98 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, the so-called RevPOR. This is a metric used in the hospitality industry to measure hotel performance. It can be measured in many different ways: we will use dividing the total revenue by the number of rooms actually being sold to guests in the period being measured.
We have 100 rooms times 365 days (we calculate with 364), so a capacity of 36,400 per year and 50% occupied, so 18,200 occupied rooms
The total revenues, as you take over, is on room rental only € 1,949,220
So per occupied night an average revenue of € 107.10 per occupied room.
Let's look at the (total) profit Per Occupied Room.
We have 100 rooms times 365 days (we calculate with 364), so a capacity of 36,400 and 50% occupied rooms, so 18,200.
The total profit, as you take over, is € 436,307 (all operations).
So per room night an average profit of € 23.97 per occupied room.
Check the effect of this on the page Cost price.
If you want to read more on this, check this page.
Example
So as a conclusion of these calculations: if you occupy one additional room an indication of the additional revenues could be 364 x 1 additional room x € 107.10 so € 38,984.
And an indication of the additional profit: 365 x 1 additional room x € 23.97 so € 8,725.
To be more specific in this look at the file on occupancy rate and look for the difference between fixed costs and variable costs.
Trying to analyze the revenues of the rooms as shown in the operating review, might bring some differences to what you expect.
Keep in mind that calculations are never 'perfect'. There is always a difference between the outcome of this calculation and the 'reality': caused by cancellations (yes or no refunds), double bookings, short stays, rounding-up, missing one day in a year etc. This all together might bring a difference up to a view percent in the expected revenues linked to the occupancy rate.
Relationship with net profit
Of course there is a strong relationship with the Net profit, costs made in your Year 1-2-3-4 decisions and the occupancy rate.
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