Your hotel occupancy rate calculated

April 15, 2017 - Andrew Muir Wood, Product and Growth Lead

Hotel occupancy rate helps you to work out the utilisation of your property over a given time period. It’s easy to calculate and an important metric to control for hoteliers that want to ensure a full property.

How is occupancy rate calculated?

To calculate occupancy rate, you first need to know the total number of “Room Nights” sold in a given time period (often 30 days). A single 3-night room reservation equates to 3 room nights, so you can’t just count the bookings. Then you simply divide by the total number of rooms in the whole hotel. If you have 100 rooms, you have 3000 room nights available over 30 days.

Why is occupancy rate useful?

If you make a lot of money from additional spending on food or activities, then monitoring and prioritising occupancy is a good idea. However, if you need to cover running costs and generate profits from room rates, then you should look at revenue metrics like Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) or look at TRevPAR which also includes ancillary spend during stay.

Occupancy rate with Pace

Pace makes it very easy to understand your hotel’s occupancy over different timeframes using your own booking data. You can simply select a room type (or your whole property) and a time period and it is calculated instantly.

Find your occupancy rate on Pace now