Occupancy rate refers to the number of occupied rental units at a given time, compared to the total number of available rental units at that time. It shows how much of the available space in a hotel is being utilized.

Hotel occupancy rate is being represented as a percentage. Even though a 100% is the focus for hotel businesses, there are cases where lower occupancy rate can result to higher income. This happens if the lower percentage is coming from higher prices. Within this context, occupancy rate should be measured alongside the average daily rate and revenue per available room.

Occupancy rate can be simply calculated by dividing the number of rooms booked by the total number of rooms.