What does the term "occupancy rate" refer to in hotels?

The term "occupancy rate" refers specifically to the percentage of rooms that are occupied over a specific time period. This metric is crucial for hotels as it provides insights into how well the property is performing in terms of attracting guests.

A high occupancy rate indicates that the hotel is successful in filling its available rooms, which can lead to higher revenue and profitability. It is calculated by taking the number of occupied rooms and dividing it by the total number of available rooms, then multiplying by 100 to express it as a percentage. This metric is often used by hotel management to assess the effectiveness of their marketing strategies and pricing models.

Understanding occupancy rates helps hotel operators make informed decisions about staffing, marketing, and pricing strategies to optimize profitability and enhance guest experiences.