YOU ASK
I reduced hotel occupancy in EstateMaster HF. Why didn’t the Room Mix and ADR figure fall with it?
propfessor.Companion exampleThe short answer
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.
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.
Work through it
- Check whether you are reading the Room Mix and ADR calculation or a P&L output.
- Confirm that room counts and room rates stayed the same.
- Inspect occupancy and rooms revenue in the P&L rather than trying to force a rate change.
| One-day illustration: 100 identical rooms | 80% occupied | 60% occupied |
|---|---|---|
| Rate per sold room | £150 | £150 |
| Rooms sold | 80 | 60 |
| Rooms revenue | £12,000 | £9,000 |
| Revenue per available room | £120 | £90 |
Simplified arithmetic, with no tax, other revenue or rate variation. These are not exported HF results.
WHAT YOU CAN DO NOW
You can separate a room-rate measure from the revenue effect of occupancy.
Can the ADR change in another scenario?
Yes, if the room rates or mix used in its calculation change. This example holds both constant to isolate occupancy.
Authored follow-up · No question credit used