Glossary · Term

Room occupancy (see Occupancy)

Room occupancy -- internationally called occupancy -- shows the share of rooms sold against the rooms available in a defined period. It is one of the most basic hotel metrics and the starting point for RevPAR and TRevPAR.

Easy to read, hard to compare: the value of the occupancy figure depends on the methodology behind it.

What we see in practice: In a benchmarking round of three owner-operated properties, the three submit their occupancy figures. Two calculate against all available rooms; the third calculates against rooms actually open, with rooms in renovation excluded. Result: 73%, 71%, and 85%. The 85% sounds strong. It is not methodologically comparable. Benchmarks only work with consistent definitions. Knowing your occupancy figure but not how it was calculated is a number without context. About as useful as a scale without a zero point.

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