Hotel Occupancy Rate
Percentage of available hotel rooms occupied on average in a period
What is Hotel Occupancy Rate?
Hotel occupancy rate is the percentage of available rooms that were sold. It shows how well a hotel fills its capacity.
Empty rooms earn nothing and cannot be sold later, so occupancy is a key measure of how well capacity is used.
How this KPI is measured
- Function
- Sales
- Sub-function
- Room Revenue
- Industry
- Hospitality & Hotels
- Type
- Lagging
- Impact
- Operational
- Unit
- %
- Measurement frequency
- Daily / Monthly
- Formula
- (Rooms sold / Rooms available) × 100
How to calculate it
Divide rooms sold by rooms available, and multiply by 100.
For example, if a hotel sold 2,700 of 3,600 available room nights in a month, occupancy is 75%.
Exclude rooms out of order from availability if you use that convention, and be consistent.
Where it is used
Managing capacity
Track how full the hotel is.
Planning staffing
Match staff to demand.
Guiding pricing
Adjust rates to fill rooms.
How to improve it
Tips and common mistakes
- High occupancy at low prices can lower revenue.
- Read with ADR and RevPAR.
- Understand seasonal patterns.
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