Hotel Revenue Glossary · Metrics

CPOR (Cost Per Occupied Room)

Operating cost per occupied room. Define the cost scope before using it: fully allocated CPOR includes allocated operating costs, while an incremental servicing-cost view includes only costs that change when one more room is occupied.

Why it matters: For marginal pricing, convert avoidable servicing cost into a channel-adjusted incremental contribution floor. Do not label that floor as fully allocated CPOR or treat either measure as a universal selling-rate target; use property-specific cost behavior and channel terms.

Worked example: Housekeeping labour A$24, linen and amenities A$7, utilities and consumables A$5 — the avoidable servicing cost of one more occupied room is A$36. Sell it through a channel that takes 15% and the hotel keeps 85% of the rate, so the break-even rate is A$36 / 0.85 = A$42.35. Anything above that adds contribution on that booking. A fully allocated CPOR that spreads fixed salaries and rates across occupied rooms is a far higher number answering a different question.

Common mistake: Quoting one CPOR figure in a pricing discussion without saying which one it is. The fully allocated number — fixed payroll, rates and insurance spread over occupied rooms — is not a floor for a distressed night, and using it that way turns down bookings that would have covered their own servicing cost and more.

All glossary terms RevPOR (Revenue Per Occupied Room) GOPPAR (Gross Operating Profit Per Available Room) Room Revenue