# Occupancy Rate Calculator

Created by Luciano Miño and Wei Bin Loo
Reviewed by Hanna Pamuła, PhD and Steven Wooding
Last updated: Mar 31, 2024

With our occupancy rate calculator, you will learn how to calculate occupancy rate and what it means for your business. Whether you're the owner of a hotel or a series of apartments, the occupancy rate of your properties is an excellent tool to evaluate the performance of your accommodation service.

Simply put, it's the percentage of occupied rooms in relation to the total number of rooms. That way, you can even get an Airbnb occupancy rate, not just a hotel occupancy rate. It's an indicator of how well your business can attract new guests. When combined with other indicators, it allows you to deliver your services in the best cost-effective way to increase revenue.

Do you want to know what the occupancy rate formula is or obtain your hotel occupancy rate? Keep reading to learn more!

## What is hotel occupancy rate, and why is it important?

The occupancy rate is one of the multiple KPIs (key performance indicators) used in real estate businesses. It tells us the percentage of the total occupied rooms at a given time (daily, weekly, monthly, or longer). This information can give you an idea to set a strategy to manage your business efficiently (our business budget calculator can aid with that too).

For example, the hotel manager and front desk employees should know the hotel's current availability to allow more guests to register or work together with the sales manager to attract more guests. In another example, a 90% Airbnb occupancy rate will point out that there is room to increase the renting price of your properties.

When paired together with other KPIs (such as ADR – average daily rate), it is an essential tool to track room revenue, as well as an indicator of the overall health of your business. Check below to learn how to calculate occupancy percentage.

## How to calculate occupancy rate: occupancy rate formula

Obtaining your hotel or Airbnb occupancy rate is really easy. Just take the number of occupied rooms, divide it by the total number of rooms, and multiply by 100 to express the result as a percentage. Below is the occupancy rate formula:

Occupancy rate = (Number of occupied rooms / Total number of rooms) * 100

As you can see, learning how to calculate occupancy percentage is very simple. Try typing in your numbers in their respective fields, and our calculator will do the work for you! Feel free to select a custom period for your calculation or add the average number of rooms in maintenance for a specific time interval using Advanced mode.

For example, if three rooms were in maintenance during the past month, you would add that number, and the calculator will do the rest. You can even compare yourself with your competitors if you have the average hotel occupancy rate for your area (yes, our occupancy calculator is that complete 😉).

It's a good idea to leave a margin for error when counting the number of occupied rooms for a later date to account for canceling, overstaying, or maintenance.

## Examples of occupancy rate calculations

Now that you know how to calculate the occupancy rate, let's look at some examples.

### Example 1:

Say you have a hotel with 200 rooms, 3 of which are on maintenance and 150 already occupied during December. The hotel occupancy rate for that month will then be:

$\footnotesize{\frac{150}{197}*100 = \text{76.14\%}}$

### Example 2:

Suppose there are two hotels nearby. For a specific date, hotel A has 78 occupied rooms out of 100 total rooms, whereas hotel B has 96 out of 100. That gives hotel A an occupancy rate of 78% and hotel B 96%. Which one is doing better financially? The answer is: we can't tell. We need more information on the rates each hotel is currently working on.

## Occupancy rate and revenue

While the occupancy rate is an indicator of how many rooms are occupied in your hotel, it doesn't take into account how much revenue each room produces. The average daily rate value does this. You can use our ADR calculator to get an estimate of how much revenue each occupied room brings in.

When the ADR value is multiplied by the occupancy rate, we obtain another useful metric: RevPAR, revenue per available room. This number is an approximation of the revenue all the rooms in the hotel generate, so it's good practice to aim for the highest possible figure since unoccupied rooms will lower its value.

## How can I increase occupancy?

Here are some ideas to increase the occupancy rate of your hotel:

• Make bookings easier – Sometimes hotels don't have an updated website, and the booking process isn't as fast as it could be, driving away potential guests. Try improving your booking system or adding other options such as booking apps. People looking for accommodation can use our day counter to count the nights they will be staying at your hotel while the website is being built.
• Work with local businesses – By connecting with restaurants or tourism agencies, you can, for example, set a partnership offering discounts in each other businesses benefiting you from the flow of customers in the food market or doing activities.
• Offer packages and promotions – During low occupancy dates, offering your customers additional discounts or services will make your hotel more appealing and can be vital to attracting new guests.
• Utilize the hotel's facilities to their fullest – By hosting weddings, for example, you will not only make your event space appealing to couples looking to host their wedding, but you will also benefit from invited guests who don't live nearby and are looking for a place to stay.
• Compare your hotel occupancy rate to others' – If you know the average hotel occupancy rate in your area (for a specific time interval), type that in the calculator within Advanced mode, and it will tell you how you are performing.
• Take advantage of our occupancy calculator! – Now that you know how to calculate the hotel occupancy rate and what it means for your business, feel free to utilize this tool to set up goals for your hotel or property and know how many rooms you will need to rent in order to satisfy your financial needs.
Luciano Miño and Wei Bin Loo
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Period
Single day
Rooms occupied (in a day)
Total rooms
Daily rate
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