The occupancy rate indicates what percentage of a hotel's available rooms were actually sold in a given period. It is the most fundamental KPI in the hotel industry — but it only becomes meaningful in combination with the average rate (ADR): a full house at dumping prices is not a success.
Rooms taken out of service (renovation, water damage) are excluded from available room nights depending on the reporting standard — what matters is handling it consistently, otherwise month-on-month comparisons are worthless.
Adjust the values — the result updates instantly.
Tip: unsold room nights × ADR = theoretical revenue potential. Whether it pays to unlock it via discounts is answered by revenue management.
Strongly dependent on location and type: city hotels often average 70–80% over the year, seasonal resorts sometimes considerably less — at higher rates. What matters is the development of RevPAR and GOPPAR, not occupancy alone.
Complimentary rooms are usually not counted as sold; day-use rooms are reported separately depending on the standard. A consistent definition in your own reporting is what counts.
RevPAR = occupancy × ADR. That is why pricing and occupancy decisions are always considered together.