Occupancy is the percentage of rooms sold out of those available over a period. It is one of the three basic metrics alongside ADR and RevPAR. On its own it says little, because filling the hotel by giving rooms away is not a good business.
Example A 100 room hotel that sells 80 on a given night runs at 80 percent occupancy.
Occupancy is the percentage of rooms sold out of the total rooms available over a specific period, such as a day or a month.
How is occupancy calculated?
You divide the number of occupied rooms by the total available rooms and multiply by 100. For example, if you sell 80 out of 100 rooms, the occupancy is 80%.
Why does occupancy matter and how is it different from RevPAR?
Occupancy shows how full the hotel is, but it does not measure profitability. Unlike RevPAR, which combines occupancy and average rate, occupancy alone can be misleading because you could fill the hotel by giving rooms away.
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