What is Occupancy Rate?
Occupancy rate is the percentage of available rooms that are sold during a specific time period.
Occupancy rate is one of the most fundamental hotel performance metrics. It shows how much of your room inventory you are actually selling. A 100-room hotel with 80 rooms sold has an 80% occupancy rate.
How to calculate Occupancy Rate
Occupancy Rate = (Rooms Sold / Total Available Rooms) x 100
Example
A 50-room guest house sells 40 rooms on a Saturday night. Occupancy rate = (40 / 50) x 100 = 80%.
Why Occupancy Rate matters
Occupancy rate tells you how much demand your hotel is capturing. High occupancy is good, but not if it comes from heavy discounting. Always read occupancy alongside ADR and RevPAR for a complete performance picture.
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