Occupancy rate: hotel performance metric explained

30 July, 2026 • Glossary • 2 views

Abstract blue illustration for the glossary entry Occupancy rate

Occupancy rate is a key hospitality metric indicating the percentage of available rooms that are sold over a specific period.

Occupancy rate is a fundamental hospitality metric that measures the percentage of available rooms that were sold over a specific period, such as a night, week, or month. It is calculated by dividing the number of rooms sold by the total number of available rooms and multiplying by 100.

For hotels, a strong occupancy rate is vital for profitability and indicates effective demand generation and pricing strategies. For instance, a hotel maintaining a high occupancy rate during off-peak seasons suggests successful marketing efforts or attractive packages that draw guests even when demand is typically lower.