Occupancy Rate is a metric used in the hospitality industry to measure the utilization of a hotel’s rooms. It represents the percentage of rooms occupied by guests during a given period, and provides insight into the demand for the hotel’s rooms and its overall financial performance.
Occupancy Rate can be calculated by dividing the number of occupied rooms by the total number of rooms available, multiplied by 100.
Mathematically, it can be expressed as:
Occupancy Rate = (Number of Occupied Rooms / Total Number of Rooms) x 100
For example, if a hotel has 100 rooms and 80 of them are occupied, the occupancy rate can be calculated as follows:
Occupancy Rate = (80 rooms / 100 rooms) x 100 = 80%
So, the hotel would have an occupancy rate of 80%, meaning that 80% of its rooms are occupied by guests.
Note that the occupancy rate is expressed as a percentage, so it provides an easy-to-read, comparative measure of hotel utilization.
