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Resort Fee Revenue Calculator

Resort fees have become a major incremental revenue line for full-service hotels.

%
$
%

Annual resort fee revenue

$3,495,240

Revenue per key

$9,986

Captured fee nights / yr

77,672

How the math works

Occupied nights = keys × 365 × occ. Captured = occupied × capture %. Revenue = captured × fee.

350 keys × 365 × 76% × 80% × $45 = $3.5M annual resort fee revenue, ~$10k per key.

How to Use

  1. Enter total keys.
  2. Enter average occupancy %.
  3. Enter resort fee per night.
  4. Enter resort fee capture rate %.
  5. Read annual resort fee revenue.

Frequently Asked Questions

What are resort fees?

Mandatory per-night fees charged on top of ADR that cover amenities (Wi-Fi, fitness, pool, parking, beach service, local calls, bottled water). Vegas popularized them at $25-50/night. Now urban full-service hotels charge $25-35 and branded resorts charge $50-100+. Unlike ADR, resort fees don't flow through OTA commissions, aren't displayed in initial search rate comparisons, and carry 90%+ flowthrough — making them extremely profitable incremental revenue.

Why don't they just raise ADR?

Three reasons: (1) OTA commissions apply to ADR but not resort fees, so $50 of resort fee keeps $50 while $50 of ADR gives $7.50-12.50 to OTAs; (2) corporate and group rate negotiations are based on ADR, so lifting resort fees preserves ADR-based discounts; (3) rate parity clauses with OTAs restrict ADR but typically don't cover resort fees. The result: resort fees are a margin-optimizer masked as a service fee.

What's the capture rate?

Not every occupied room generates resort fee revenue. Loyalty comps, awards stays, crew bookings, negotiated corporate contracts, long-term stays, and local-resident packages often waive the fee. Capture rate = (paid resort fee nights ÷ total occupied nights). Typical urban full-service: 70-85%. Vegas: 85-95%. Beach resort: 60-75% (higher loyalty comp usage). The gap between 'listed' resort fee revenue and actual is often 15-30%.

Are resort fees a regulatory risk?

Growing. FTC issued 'drop the junk fees' guidance in 2024-2025. Multiple state AGs (NY, CA, TX) have taken enforcement actions. Some jurisdictions require resort fees to be displayed prominently in total cost. Expect continued pressure. Hotel owners should model resort fee elimination as a downside case: full-service hotels lose 7-12% of rooms revenue, meaningful for GOP. Transition to bundled rate pricing or eliminate waived categories first.

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