Break-even occupancy

Break-even occupancy is the minimum occupancy rate the property needs to cover all expenses, including the mortgage. If the property hits this occupancy, you neither make nor lose money.

Example

If break-even occupancy is 48%, the property only needs to be occupied 48% of nights to cover costs. That leaves a significant cushion if the market softens.

How to use it

Compare break-even occupancy to the projected market occupancy from your analysis:

• If the market average is 68% and break-even is 48%, you have a 20-point buffer — a strong signal.
• A break-even occupancy above 75–80% is a warning sign. There is little margin for slow seasons or vacancies.

The wider the gap between break-even and projected occupancy, the more cushion you have against underperformance.

Where to find it

Break-even occupancy appears in the financial pro forma section of every Full Analysis, alongside the three revenue scenarios.