Revenue metrics
What is hotel occupancy rate?
Occupancy rate is the percentage of a hotel's available room nights that were sold in a period. It is calculated by dividing room nights sold by room nights available. It shows how full the hotel was, but not what guests paid.
Occupancy rate formula
Occupancy % = room nights sold ÷ room nights available × 100
A 40-room hotel has 1,200 room nights available in 30 days. If it sells 900, occupancy is 75%. You can work it out with the RevPAR, ADR and occupancy calculator.
What counts as available
Hotels differ on whether rooms out of order or used by staff are counted as available. Either rule works, as long as you apply the same one every month. Otherwise occupancy and RevPAR will not be comparable from one period to the next.
In StaySynq
StaySynq shows occupancy, ADR and RevPAR live from your own bookings, by day, month or channel.
Common questions
What is a good occupancy rate?
It depends on the market and season. Compare with the same period last year and with similar hotels nearby, and read it together with ADR.
Can occupancy be over 100%?
Only through day-use or hourly stays, where one room is sold more than once in a day. For overnight stays it cannot exceed 100%.
Related terms
- RevPARRevPAR, or revenue per available room, is a hotel's room revenue divided by the number of room nights it had available to sell in a period. It combines price and occupancy into one number, which makes it the standard way to compare hotels of different sizes.
- ADR (average daily rate)ADR, or average daily rate, is the average price a hotel earns for each room it sells in a period. It is calculated by dividing room revenue by the number of room nights sold. ADR shows how well you are pricing, but says nothing about how many rooms stayed empty.
- OverbookingOverbooking is when a hotel accepts more reservations than it has rooms for a given night. Some hotels do it deliberately to offset expected no-shows and cancellations. It also happens by accident when OTA availability is not updated quickly enough after a booking.
- No-showA no-show is a guest with a confirmed reservation who neither arrives nor cancels before the hotel's cut-off time. The room goes unsold for that night, so most hotels charge a no-show fee, typically the first night, when the booking was guaranteed by card or deposit.
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