Prudent
MissesAnnual benefit-€757
Payback periodNo payback
5-year result-€22,734
GATAVIA · IMPROVEMENT ROI
An improvement is not profitable because guests like it. It is profitable if it produces enough money to pay for itself.
A pool, hot tub, extra bedroom or renovation may increase demand, or become an expensive feature. Calculate exactly what must improve in rate, occupancy or revenue for the investment to make sense.
The mistake this avoids
•Spending thousands because it should increase bookings.
•Confusing higher demand with higher profit after energy, maintenance and fees.
•Not knowing whether the investment only works in an optimistic scenario.
The Gatavia solution
Enter your baseline, real investment cost and own impact forecast. Gatavia calculates payback, 1/3/5-year ROI, net present value and the exact rate, occupancy and revenue thresholds.
Your property before the improvement
Current annual revenue
€40,953
The investment
What you expect to change
GATAVIA ANSWER · Heated pool
At these numbers, the improvement does not pay for itself
Expected revenue uplift does not comfortably cover investment, recurring costs and installation downtime.
Additional annual net benefit
€1,767
Payback period
128.7 months
Return · 1 year
-95.5%
Return · 3 years
-75.8%
Return · 5 years
-56.2%
Net present value · 5 years
-€11,642
What it must produce to make sense
Required annual gross revenue uplift
€9,393
Required nightly-rate uplift if occupancy is unchanged
22.9%
Required occupancy uplift if nightly rate is unchanged
+15.6 pts
Equivalent additional occupied nights needed
57 nights
Maximum investment for your payback target
€6,119
Where the result comes from
Current revenue
€40,953
Revenue after improvement
€46,831
Incremental revenue
€5,878
Lost revenue from downtime
€948
New recurring costs
€3,200
Does it only work in the good-looking scenario?
Prudent = 50% of your forecast uplift. Expected = your assumption. Strong = 150%. We stress your forecast rather than invent market data.
Expected
MissesAnnual benefit€1,767
Payback period128.7 months
5-year result-€10,114
Strong
MissesAnnual benefit€4,372
Payback period52.0 months
5-year result€2,914
How we calculate it
We start with average nightly rate × available nights × occupancy. We apply your expected rate and occupancy uplift, add extra revenue and deduct distribution or management costs on incremental revenue, maintenance, energy, insurance and revenue lost during downtime. Return and net present value use incremental cash flows only.
The calculator does not claim how much a pool, hot tub, air conditioning, EV charger or renovation will increase demand. Use your own data, comparables or market research; Gatavia calculates the threshold required for the investment to make sense.
Improvement ROI FAQ
Does it work for any improvement?
Yes. Pool, hot tub, air conditioning, extra bedroom, renovation, EV charger, pet-friendly positioning or any investment with estimable cost and impact.
Does Gatavia invent the demand uplift?
No. You enter your assumption. Gatavia calculates what the improvement must produce to justify the investment.
Does it look beyond the first year?
Yes. It calculates 1, 3 and 5-year ROI, net present value, recurring costs and payback period.