What is Occupancy Rate?
Occupancy rate is the percentage of your available rooms that were sold over a period. It is the volume half of revenue and one of the first numbers any operator checks every morning.
How to calculate occupancy
Occupancy = (Rooms Sold / Rooms Available) x 100.
Example: 128 rooms sold out of 160 available gives (128 / 160) x 100 = 80.0%.
Why occupancy matters
- It shows how well you are filling the building.
- Paired with ADR it produces RevPAR, the headline performance metric.
- High occupancy at the wrong rate can still mean lost revenue, so read it alongside ADR.
How to improve occupancy
- Open the right channels and keep availability and rates in sync everywhere.
- Use length-of-stay and last-minute offers to fill soft dates.
- Recover would-be cancellations and no-shows with flexible, well-timed rules.