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21 July 2026

Unsellable Nights: Understanding The Chamberson’s Lost Revenue Charge

If you have ever skimmed a hotel damage policy and wondered what “lost revenue” or “unsellable nights” actually means, you are not alone. Unsellable Nights can sound technical, but the idea is straightforward: when guest damage leaves a room unable to be sold, the room may be taken out of service, and a charge may apply for each affected night. At The Chamberson, this sits within the property’s Damage, Loss and Excessive Cleaning policy and helps protect the hotel, future guests, and the standard of every stay.

This guide explains what the lost revenue charge means, why it exists, when it may apply, and how guests can avoid it. It also covers related charges and practical steps that make check-out smoother for everyone.

What are Unsellable Nights?

Unsellable Nights are nights when a room cannot be offered to another guest because it has been damaged or left in a condition that requires repair, replacement, or specialist cleaning.

In simple terms, if a room is unsellable due to damage, a charge may apply based on the nightly rate for each affected night.

That clause matters because hotel rooms are perishable inventory. If a room cannot be sold tonight, that opportunity is gone. A lost revenue charge addresses the gap between the damage itself and the income lost while the room is unavailable.

Direct answer: When does the lost revenue charge apply?

The lost revenue charge applies when a room is unsellable due to damage, and the charge is calculated at the nightly rate per affected night.

Why a lost revenue charge exists

A lost revenue charge is not just about recovering money. It supports the hotel’s ability to restore the room quickly and maintain a consistent guest experience.

It protects future guests

When a room is damaged, the next guest should not inherit the problem. A hotel may need time to:

This protects incoming guests from walking into a space that is incomplete, unclean, or below standard.

It supports fairness

Without a lost revenue clause, the cost of one guest’s actions can spill over to everyone else. The policy helps ensure that the party responsible for the damage carries the cost, rather than shifting it onto the business or future guests.

It reinforces room availability management

Hotels rely on accurate room inventory. If one room must be removed from sale unexpectedly, it affects operations, housekeeping schedules, and reservation planning. A lost revenue charge recognizes that damage has operational consequences beyond physical repairs.

The lost revenue clause is part of a broader policy covering damage, loss and excessive cleaning.

At check-in, a NZ$500 hold is placed on the guest’s card as security against:

This is a temporary hold, not a charge. If no charges apply, it is released within 24–48 hours of checkout, although funds may take up to 7 business days to reappear depending on the issuing bank.

Published minimum charges

The policy also sets out published minimum charges in NZD, GST inclusive:

Issue Minimum charge
Smoking / vaping in room $500
Excessive cleaning $150
Biohazard cleaning (vomit, blood, bodily fluids) $300
Damage to furniture, fixtures, or walls $150
Stained or damaged linen / towels $50 per item
Missing, broken, or stolen items Replacement cost
Lost key / access card $50
Unauthorised pet $200 + cleaning
Lost revenue (room unsellable due to damage) Nightly rate per affected night

This structure makes the policy easier to understand because it distinguishes between common minimum charges and the separate issue of actual lost revenue when a room cannot be sold.

Unsellable Nights vs. ordinary damage charges

Not every problem creates an unsellable room. That distinction is important.

Ordinary damage

Some issues can be resolved quickly or repaired without taking the room out of service. Examples may include:

These issues may still result in charges, but they do not automatically mean the room becomes unsellable.

Damage that affects sellability

An Unsellable Nights charge is more likely when the room cannot reasonably be prepared for the next booking. This may happen when damage is extensive, disruptive, or requires work that prevents the room from being occupied.

In those cases, the hotel may incur both:

  1. the cost of repair, replacement, or cleaning, and
  2. the nightly rate for each affected night if the room cannot be sold

What happens if actual costs are higher?

The policy states that where actual repair, replacement, or cleaning costs exceed the published minimum, the guest may be charged actual cost plus a 15% administration fee.

That matters because a minimum charge is just that—a minimum. If the true cost of restoring a room is higher, the final amount may increase accordingly.

Direct answer: Can the hotel charge more than the listed minimums?

Yes. If the actual repair, replacement, or cleaning cost is higher than the published minimum, the charge may be actual cost plus a 15% administration fee.

How guests are notified

Clarity and documentation are a key part of any damage policy.

If a charge is applied, guests are notified by email within 48 hours with:

If a guest wishes to dispute the charge, disputes must be submitted in writing within 14 days, and a response is provided within a further 14 days.

This process helps make charges more transparent and gives guests a defined path to raise concerns.

How payment works

Charges apply to the card on file. If the card is declined for any residual amount, an invoice with 7-day payment terms may be issued.

Guests who cannot provide a valid card for pre-authorisation may be refused accommodation. Cash is not accepted.

These payment rules are directly connected to the hotel’s ability to manage unexpected losses, including Unsellable Nights.

Common situations that can lead to bigger charges

While every case depends on the condition of the room, some patterns are more likely to trigger significant recovery costs.

Smoking or vaping indoors

Smoking and vaping in a room can require deep deodorising and cleaning. If the room cannot be turned around in time for the next booking, the financial impact may extend beyond the standard smoking charge.

Damage to furniture, fixtures, or walls

Visible structural or furnishing damage can take a room out of service while repairs are arranged.

Biohazard cleaning

Bodily fluids may require specialist treatment. In hospitality, this often means stricter cleaning protocols and possible downtime for the room.

Missing or broken essential items

If key room items are damaged or removed, the room may not meet the standard required for sale until replacement is completed.

Practical tips to avoid an Unsellable Nights charge

The easiest way to avoid a lost revenue charge is to treat the room with care and follow house rules consistently.

1. Respect the room and its contents

By booking and checking in, the guest accepts responsibility for the room and its contents. Small issues can escalate quickly when they affect the next arrival.

2. Do not smoke or vape in the room

This is one of the clearest avoidable triggers for extra charges.

3. Report accidental damage promptly

If something goes wrong, let the property know as soon as possible. Early notice can help staff assess the issue quickly and may reduce disruption to future bookings.

4. Avoid leaving the room in a condition that requires unusual cleaning

Excessive mess, staining, or biohazard situations can create delays and additional costs.

5. Make sure only approved guests stay in the room

The property must be informed of all guests staying in the room for fire safety and legal compliance. If you are travelling with extra people, address that before check-in rather than after.

6. Return key cards at check-out

This is a simple step that helps avoid unnecessary replacement charges.

Helpful stay details to keep in mind

Understanding a few practical policies can help guests avoid last-minute stress.

Check-in and check-out

Minimum check-in age

The lead guest must be at least 25 years old.

Security hold

At arrival, a NZ$500 hold is placed on the guest’s card at check-in.

If you are planning your visit, it is also worth reviewing stay details such as on-site car parking, luggage storage, and room features in advance.

Why this policy benefits careful guests too

A strong damage policy can actually be reassuring for respectful travellers.

It signals that the property takes room standards seriously. It also helps preserve what guests expect from a stay: a clean, functional, and well-maintained room on arrival.

In other words, Unsellable Nights is not just a penalty clause. It is part of a broader system that supports consistency, accountability, and guest experience.

Quick summary

Here is the short version:

Conclusion

Understanding Unsellable Nights helps remove the guesswork from hotel damage clauses. At The Chamberson, the lost revenue charge applies when a room is left unsellable due to damage, with the nightly rate charged for each affected night. That approach protects room standards, supports fairness, and helps ensure future guests receive the experience they booked.

For a smoother stay, take a moment to review check-in details, guest rules, and room policies before arrival. If you are ready to plan your visit, check availability and make sure your stay details are confirmed in advance.