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What is hotel occupancy rate and how is it calculated?
Hotel occupancy rate is rooms sold divided by rooms available, multiplied by 100. If 70 of 100 available rooms were sold on a night, occupancy is 70 percent. It shows how much of your room inventory is being used.
It matters as a basic measure of demand, but it says nothing about price.
Commonly misread:
- Rooms out of order may be removed from available rooms or counted, depending on policy. Choose one rule and keep it.
- Complimentary and house-use rooms may or may not count as sold.
- High occupancy achieved through deep discounting can earn less than lower occupancy at higher rates.
Always read occupancy together with average daily rate and RevPAR, which combine volume and price.
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