Occupancy rate is the share of available rooms that were sold — rooms occupied divided by rooms available. The foundation metric for hotel performance and the input to RevPAR.
The example
96 sold of 120 rooms.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Rooms sold | 96 |
| 3 | Rooms available | 120 → 80% |
The formula
The formula:
How it works
How it works:
- Rooms sold is the number of occupied (paid) rooms for the night or period.
- Rooms available is total sellable rooms — exclude any out of order.
- Divide and format as a percentage for the occupancy rate.
- Over a period, sum sold and available room-nights before dividing.
Occupancy alone can mislead. A hotel can run 100% occupancy by slashing rates — full but unprofitable. That’s why occupancy pairs with ADR (rate) to give RevPAR (revenue per available room), which captures both how full and how lucrative the night was.
Try it: interactive demo
Rooms sold and available.
Variations
Period occupancy
Room-nights:
Rooms to sell for target
Hit a goal:
Vacancy rate
The flip side:
Pitfalls & errors
Exclude out-of-order rooms. Available should be sellable rooms only.
Room-nights over a period. Sum both before dividing for multi-day occupancy.
Pair with ADR. High occupancy at low rates can still lose money.
Practice workbook
Frequently asked questions
How do I calculate hotel occupancy rate in Excel?
How do I calculate occupancy over a period?
Why pair occupancy with ADR?
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