At what occupancy rate will a five-star hotel be profitable?

The profitability of a five-star hotel is not determined solely by occupancy rate. According to international standards, usually a five-star hotel has achieved breakeven if it can achieve an occupancy rate of 30 to 35%. In contrast, the profit and loss threshold for one-star hotels is higher, usually above 60. However, this standard may be different for individual guest apartment hotels and hotels that mainly rely on travel groups, so the specific value is not fixed and needs to be judged by considering factors such as the diversity of guest sources, pricing strategies, and operating costs.

It is worth noting that the higher the occupancy rate, the better. In fact, high occupancy rates can cause problems. As occupancy increases, hotel facilities wear out faster and maintenance costs increase. At the same time, in order to cater to the large number of guests, service quality may suffer, thereby damaging the hotel's reputation. Therefore, while pursuing profitability, hotel managers also need to take into account the maintenance of facilities and the provision of quality services to maintain long-term competitiveness. In general, to determine the profitability of a five-star hotel, it is necessary to comprehensively analyze various factors instead of relying solely on the occupancy rate indicator.