Aparthotel Economics

Occupancy, ADR, staffing ratios and the break-even that decides the deal

A scattered portfolio of units carries a thin, flexible overhead, while an aparthotel carries a heavy, fixed one, and that difference changes how you must judge a deal. This book teaches the economics of a whole building. It explains the metrics that matter: occupancy, average daily rate, revenue per available room and gross operating profit per available room. Above all it explains break-even occupancy, the figure that decides whether a building is a business at all. You will learn where to find reliable local data for free, how to forecast true income rather than a perfect year, and why the cost stack is far deeper than the one you knew from individual units. The forecast is stress-tested against a bad month, voids and a rate rise, and a complete worked example sets out revenue, operating costs, the result and the break-even. It ends with a deal calculator and the legal questions it cannot answer. Next in this series: “Use Class, Fire Safety and Hotel Regulation”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.