Hotel Room Occupancy Calculator
Enter to calculate ADR and RevPAR
Occupancy Rate:
0%
Vacancy Rate:
0%
Unsold Rooms:
0
Average Daily Rate (ADR):
$0.00
RevPAR (Revenue Per Available Room):
$0.00
How to Calculate Room Occupancy Rate
Room occupancy rate is one of the most critical Key Performance Indicators (KPIs) in the hospitality industry. It measures the percentage of available rooms that are occupied at a specific time. Whether you manage a large hotel chain, a boutique B&B, or a vacation rental, understanding your occupancy rate is essential for evaluating the success of your business, managing inventory, and optimizing pricing strategies.
The Occupancy Rate Formula
The calculation for room occupancy is straightforward. It compares the number of rooms actually sold against the total number of rooms available for sale.
Formula:
Occupancy Rate (%) = (Total Rooms Sold / Total Rooms Available) × 100
Occupancy Rate (%) = (Total Rooms Sold / Total Rooms Available) × 100
For example, if a hotel has 100 rooms and 80 rooms are sold for the night, the calculation would be:
- (80 / 100) × 100 = 80%
Why is Occupancy Rate Important?
Tracking this metric helps hoteliers in several ways:
- Revenue Management: High occupancy suggests demand is high, which may allow you to increase room rates (ADR). Low occupancy might indicate a need for promotions.
- Operational Planning: Knowing how many guests to expect helps in scheduling housekeeping, front desk staff, and restaurant inventory.
- Benchmarking: It allows you to compare your property's performance against local competitors or your own historical data.
Understanding Related Metrics: ADR and RevPAR
While occupancy tells you how full your hotel is, it doesn't tell the whole financial story. That is why our calculator also includes options for ADR and RevPAR if you input your revenue.
- ADR (Average Daily Rate): Measures the average rental income per paid occupied room.
Formula: Room Revenue / Rooms Sold - RevPAR (Revenue Per Available Room): Measures the revenue generated per room available, regardless of whether it was occupied. This combines both occupancy and rate into a single metric.
Formula: Room Revenue / Total Rooms Available
Frequently Asked Questions
What is a "good" occupancy rate?
This varies heavily by location and season. A city hotel might aim for 70-80% year-round, while a seasonal resort might see 95% in peak season and 40% in the off-season.
Does "Total Rooms Available" include rooms under maintenance?
Generally, no. For operational occupancy, you should subtract "Out of Order" (OOO) rooms from your total inventory to get a true picture of sellable efficiency.