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Connects margin to occupancy, average daily rate, OTA commission, housekeeping load, utilities, amenities, and event or food revenue mix.
Enter your numbers first, then use the niche guidance below to interpret the output against hotel owners, general managers, revenue managers, and property accountants..
Hotels do not interpret margin like a simple product business. Occupancy can rise while profitability falls if discounted rooms bring higher housekeeping cost, OTA commission, breakfast cost, utilities, or staffing pressure.
Use this page to model a first-pass hotel margin view before changing rates, accepting group business, or adding amenities. The output is most useful when read next to ADR, occupancy, RevPAR, and channel mix.
Gross margin compares revenue with direct room or service costs. Net margin subtracts payroll, utilities, maintenance, property software, commissions, and other operating expenses.
A hotel posts $240,000 in room and ancillary revenue, $72,000 in direct guest costs, and $132,000 in payroll, utilities, maintenance, software, and commissions.
The result should be read with occupancy and ADR. A good gross margin can still hide weak net margin if occupancy came through expensive channels or required heavy labor coverage.
Interpretation assumptions: Amounts and percentage assumptions here are illustrative planning inputs, not measured industry averages. Compare results with your own costs and records; any displayed threshold bands are illustrative and do not establish typical business performance.
Yes. Treat OTA commissions as a cost of acquiring that room night so direct and third-party bookings can be compared honestly.
No. RevPAR helps explain revenue productivity, but margin also depends on channel mix, labor, guest costs, utilities, and fixed overhead.
Use the discounted revenue and add any incremental event, breakfast, housekeeping, and staffing costs tied to the group.
Model food and beverage margin when hotel dining is material.
Check labor cost before changing schedules or coverage.
Review payback before investing in rooms, amenities, or equipment.
Focuses on food cost, labor scheduling, delivery platform fees, waste, rent, and the difference between menu-level and month-level margin.
Frames margin around billable technician time, parts markup, dispatch efficiency, emergency premiums, callbacks, and truck-level overhead.
This page provides a planning estimate only. It does not replace hotel accounting, tax, lending, franchise, or property-management advice.
Your results will appear here
Enter your financials and click Calculate to compare gross and net margin against illustrative planning thresholds. Thresholds are illustrative planning bands for scenario review, not observed industry averages or benchmarks from third-party reports.