Cost Per Occupied Room (CPOR)

Reviewed: 2026-10-10 · Authority: Scale My Hotel Advisory · Verified Standards

PLAIN-ENGLISH DEFINITION

Cost Per Occupied Room (CPOR) tracks the direct variable expenses incurred specifically to prepare, clean, service, and turn over an individual occupied guestroom during a defined stay period.

CALCULATION FORMULA & UNIT MEASURE CPOR = Total Variable Room Operating Expenses / Total Occupied Room Nights

Why It Matters for Independent Operators

CPOR sets the absolute break-even tariff floor. Selling a room for ₹2,000 when CPOR is ₹2,200 produces a cash loss on every guest hosted, irrespective of top-line revenue figures.

Practical Scenario & Calculation

Illustrative Scenario

[Illustrative Scenario] A homestay incurs ₹1,80,000 in monthly laundry, guest bathroom amenities, cleaning labour, and room utilities while hosting 300 occupied room nights. CPOR = ₹1,80,000 / 300 = ₹600.

How Operators Can Apply This Concept

Calculate CPOR every quarter. Use it as an unbreachable constraint when setting minimum rate tiers or evaluating distressed inventory flash promotions.

Common Misunderstanding to Avoid

CPOR must not include fixed overheads like building lease, mortgage interest, property taxes, or permanent executive salaries, which exist regardless of occupancy.

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RELATED GLOSSARY CONCEPTS

Average Daily Rate (ADR) → Gross Operating Profit Per Available Room (GOPPAR) → Hotel Pricing Floor → Dynamic Pricing →

Methodology & Source Standards: Hospitality Financial Management Best Practice Standards.