How to calculate cost per occupied room
Cost per occupied room (CPOR) is calculated by dividing the operating costs associated with occupied rooms by occupied room nights for the same period.
If a hotel has $18,000 in applicable room costs and 300 occupied room nights, CPOR is $60.
What costs should be included in CPOR?
A practical operating view may include costs that rise with occupied rooms, such as housekeeping labor and supplies, guest amenities, laundry, cleaning supplies, and other room-related operating expenses. Keep the definition consistent over time.
CPOR vs. ADR
ADR measures average room revenue, while CPOR measures modeled cost per occupied room. Together they provide a simple view of room-level economics before fixed costs and other hotel expenses.
How CPOR fits with occupancy and RevPAR
Occupancy measures inventory utilization, ADR measures achieved room rate, and RevPAR combines rate and occupancy. CPOR adds a cost perspective and moves the analysis toward operating profitability.