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Hotel AV Revenue Calculator
AV rental is high-margin ancillary for events and conventions, often 8–18% of group F&B.
Hotel commission
$7,575
Total AV revenue
$15,150
Per attendee
$101
How the math works
Total AV = attendees × per-attendee + labor. Hotel share = total × commission.
150 × $85 + $2,400 = $15,150 × 50% = $7,575 hotel commission.
How to Use
- Enter attendees.
- Enter av per attendee.
- Enter av labor.
- Enter commission to hotel %.
- Read hotel commission.
Frequently Asked Questions
In-house vs outsourced AV?
PSAV/Encore in-house: ~50% commission to hotel, turnkey for client, full service. Hotel direct: $20–40k AV equipment investment, 70–80% margin but operational burden. Bring own AV: client saves 30–50% but adds logistics, often forbidden by ballroom contract. Standard markup: 250–400% on equipment list price. Labor: $400–1,500/day technician. Conferences: $50–250 per attendee in AV revenue typical.
How does this support hotel underwriting?
Hotel investors and operators use this calculator alongside RevPAR, GOP, and flow-through analysis to validate operating assumptions. Pair it with a comp set benchmark (STR or HotStats data), brand/franchise standards, and seasonal demand patterns. Output is most useful when triangulated against trailing twelve-month financials and a forward booking pace report.
Brand vs independent treatment?
Branded hotels (Marriott, Hilton, Hyatt, IHG, Choice, Wyndham) typically follow USALI 11th edition reporting which dictates how this metric flows through the P&L. Independent and lifestyle hotels have flexibility but most lenders still expect USALI-aligned reporting. Use brand standards or local CVB data when defaults aren't representative of your asset.
Seasonal sensitivity?
Inputs based on annual averages mask peak/shoulder/trough volatility. Resort properties may see 60–80% of annual revenue concentrated in 4–6 months. Urban transient is more even but dips for weekends. Model peak month, shoulder month, and trough month separately if seasonality exceeds 20% swing. Stress test with a 10–15% RevPAR shock for cycle planning.
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