# How to calculate occupancy rate of hotel

Calculating the occupancy rate of your hotel is important, but not sacred. To calculate your hotel's success correctly, you should also look at the revenue per available room (RevPAR) or the average length of stay (ALOS). Would you like a clear overview of the most important calculations for your hotel? Download our useful infographic! Calculate your Occupancy Rate Your property occupancy rate is one of the most important indicators of success. It is calculated by dividing the total number of rooms occupied by the total number of rooms available times

Calculator Academy. Enter the what does the word estranged mean rooms sold and total rooms available in your hotel and the total rooms sold and total rooms available in your competitors hotel to calculate the occupancy rate index.

This calculator can also determine your occupancy percentage if you only enter your total rooms booked and total rooms available. An occupancy rate is defined as the ratio of occupancy of your hotel compared to that of a competitor or set of competitors.

Calculate your hotels occupancy percentage by dividing the total rooms booked by the total rooms available and multiplying by Using the same method as step one, calculate the occupancy percentage of your competitor. An occupancy rate index is defined as the ratio of your occupancy percentage to a competitor or set of competitors occupancy percentage. Gross Rent Multiplier Calculator. How to calculate an occupancy rate index?

First, determine your hotels occupancy percentage. Next, determine how to calculate occupancy rate of hotel competitors occupancy percentage. Finally, calculate the occupancy index using the equation above. Using the equation above calculate your occupancy rate index. What is an occupancy rate index?

Average room rate formula

Occupancy rate is the percentage of occupied rooms in your property at a given time. It is one of the most high-level indicators of success and is calculated by dividing the total number of rooms occupied, by the total number of rooms available, times , creating a percentage such as 75% occupancy. Applying length of stay (LOS) restrictions is the best way to increase your occupancy rate. First, determine your hotels occupancy percentage. Calculate your hotels occupancy percentage by dividing the total rooms booked by the total rooms available and multiplying by Next, determine your competitors occupancy percentage. Using the same method as step one, calculate the occupancy percentage of your competitor. Calculated your occupancy rate by dividing the total number of rooms occupied by the total number of rooms available times , e.g. 75% occupancy. Room occupancy calculator. Want to do it this easy way? Use our free calculator! Hotel room night vs. hotel bed night. Room occupancy gets more specific when you consider bed nights.

In our Hotel KPIs series, we provide straightforward explanations for important hotel KPIs, including how to influence hotel KPIs in and their significance in a changing hospitality landscape. Note that your available rooms should include those that are temporarily out of service e. However, rooms which are out of order not available for sale due to larger-scale construction should not be counted as available rooms.

This means it indicates how successful you were at selling your rooms. The success of all these initiatives depends on how targeted they are, your competition and, of course, on the economic situation. In a weak economy, you will likely see lower overall demand and therefore lower occupancy. Global crises like the Covid pandemic and resulting travel bans will also have a strong impact on this metric. Compare your current occupancy rates with historical values to see how your performance developed over time.

Understanding these patterns allows you to create a solid revenue management strategy that maximises both your rates and your occupancy. Finally, benchmark your occupancy rate against your direct competitors. As outlined above, there are a few standard ways of boosting your occupancy rate such as promotional offers and packages, LOS restrictions, revenue strategy adjustments , advertising campaigns and other marketing activities.

Recovering from imprudent rate cuts can also be challenging. A better approach to driving occupancy consistently would be to establish and stick with a solid revenue strategy without erratic rate changes. Focusing on improving guest satisfaction and encouraging them to leave great reviews is also a good long-term strategy. On top of convincing more people to book with you, a good reputation also allows you to charge higher rates which is good for your bottom line.

Discover Oaky Book a demo. Occupancy Rate OCC. What is the occupancy rate? An example: The Grand Hotel has a total of rooms.

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