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