Enter the total cost of the hotel/apartment and the number of occupied rooms into the calculator to determine the cost per occupied room.

## Cost Per Occupied Room Formula

The following equation is used to calculate the Cost Per Occupied Room.

CPOR = C / #OR

• Where CPOR is the cost per occupied room (\$/room)
• C is the total cost to run the hotel/apartment complex (\$)
• #OR is the number of occupied rooms

To calculate the cost per occupied room, divide the operation costs of the building by the number of occupied rooms.

## What is Cost Per Occupied Room?

Definition:

Cost per occupied room is a term used in finance and real-estate to describe the cost it takes to run a hotel or apartment complex per occupied room.

Knowing this information can then be use to calculate the profit per room if the revenue per room is known.

## How to Calculate Cost Per Occupied Room?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per Occupied Room.

First, determine the total operational costs. In this case, the hotel costs \$4,000.00 to run per day.

Next, determine the number of occupied rooms. On average, this hotel has 40 rooms occupied.

Finally, calculate the cost per occupied room using the formula above:

CPOR = C / #OR

CPOR = \$4,000 / 40

CPOR = \$100.00 /room