Labor cost per available room, or LPAR, is a measure of a hotel's labor expenses relative to the number of available rooms. LPAR is calculated by dividing total labor costs by the total rooms available in a given period.
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The best available rate (BAR) is one of the most standard rate plans. It's the lowest discounted rate that can be offered to a guest to break even. Most properties have at least two base rates to cover high and low seasons.
How is cost per occupied room calculated in a hotel? CPOR is calculated by dividing total operating expenses by total number of occupied rooms. For example, if a hotel has total costs of $100,000 and has 500 occupied rooms, then the CPOR would be $200 ($100,000 divided by 500).
Hotel fees encompass a range of extra charges guests may pay for amenities and services. However, they are more than just additional charges on a guest's bill. They can also be strategic revenue boosters that can significantly elevate your hotel's profitability.