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LEARN ESTATEMASTER HF / SAMPLE LESSON

Separate rate from occupancy.

Explain why ADR stays steady while room revenue changes.

Begin the lesson
Same room rate. Less room revenue.
100 rooms£150 per sold room
OCCUPANCY80%
Room revenue
£12,000
RevPAR
£120
OCCUPANCY60%
Room revenue
£9,000
RevPAR
£90

One day. Identical rooms. ADR stays at £150.

EstateMaster HF / Room Mix and ADR versus occupancy in the P&L.

01
THE IDEA TO UNDERSTAND

Occupancy falls. ADR stays put.

You changed occupancy from 80% to 60%, with the same rooms and room rates.

HOW IT WORKS

The Room Mix and ADR calculation weights the room rates using the room mix and assumes 100% occupancy at that stage. Occupancy is applied later in the P&L. A lower occupancy assumption therefore does not, by itself, require the Room Mix and ADR figure to fall.

The method you will practise

  1. Check whether you are reading the Room Mix and ADR calculation or a P&L output.
  2. Confirm that room counts and room rates stayed the same.
  3. Inspect occupancy and rooms revenue in the P&L rather than trying to force a rate change.

EstateMaster HF / Room Mix and ADR versus occupancy in the P&L.

02
THINK IT THROUGH

If occupancy falls, must the Room Mix and ADR result fall too?

Choose what you expect. The feedback will help you test your starting idea.

03
YOUR TURN

Change occupancy in the arithmetic example

Compare the cases below. Notice what changes, then read the explanation of why.

WHY THIS HAPPENS

Simplified arithmetic, with no tax, other revenue or rate variation. These are not exported HF results.

04
CHECK WHAT YOU UNDERSTAND

With room mix and rates unchanged, where should you investigate the occupancy effect?

Choose your next action
Give me a hint

Check whether you are reading the Room Mix and ADR calculation or a P&L output.

05
TAKE THE SKILL INTO YOUR WORK

Now try it in your software.

Compare the Room Mix and ADR calculation with occupancy in the P&L. Reconcile rooms, occupancy, rate and revenue for one period. This simplified example includes room revenue only.

WHAT YOU SHOULD BE ABLE TO EXPLAIN

You can separate a room-rate measure from the revenue effect of occupancy.

Need help with your own example?

The Companion is where you ask about the task on your screen. Include your software version, what you changed and the result you expected.

Read this module’s Companion example

This sample checks your reasoning here. It cannot inspect or certify your work in another application.