Occupancy Rate

What is Occupancy Rate (OCC)?

OCC is one of the KPIs used by hotels. Other KPIs like ADR are used in combination with OCC to result in revenue per available room (RevPar). OCC results in a percentage (e.g. 75% occupancy) and shows the available space that is being sold in a certain timeframe.

How to calculate OCC?

Total number of rooms occupied / total number of rooms available * 100

Example

Hotel the Grand has 200 rooms with guests staying in 150 rooms, it has a 75% Occupancy Rate.

Pro’s

  • Easy to increase by for example using length of stay restrictions
  • Gives an indication of the financial health of the area (useful for potential investors)


Con’s

  • OCC should only be used along with Occupancy Rate to generate the RevPar score. 

More on Occupancy Rat

Occupancy Rates amongst countries in the EU

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