STR Financial Analysis

What This Shows You

This table answers the question: "What happens to my Year 1 profit if my assumptions are wrong?"

How to Read It

1. Choose two variables you want to test (e.g., pricing and occupancy)
2. Columns (across the top) show different values for your first variable
3. Rows (down the left side) show different values for your second variable
4. Each cell shows your Year 1 net profit under that combination

Understanding the Colors

• 🟢 Green = Profitable scenarios (above your base case)
• 🟡 Yellow = Borderline scenarios (close to base case)
• 🔴 Red = Risky scenarios (below base case)

Example Questions This Answers

• "What if I charge 20% less but get 30% more bookings?"
• "How much occupancy do I need to break even?"
• "Can I afford higher management fees if pricing stays strong?"

Recommended Tests

Most Useful: Columns = "Occupancy Rate", Rows = "Average Daily Rate"
This shows the trade-off between pricing and bookings.