Occupancy rate

Occupancy rate is the percentage of rooms a hotel sells out of its total available rooms. Formula: (rooms sold ÷ rooms available) × 100. A 200-room hotel that sold 160 rooms last night had 80% occupancy. The hotel industry watches occupancy alongside ADR because they trade off: hotels can push rates up (higher ADR) but risk losing bookings (lower occupancy), or drop rates (lower ADR) to fill more rooms. Healthy luxury hotels run 65-80% annual average occupancy, peaking at 90%+ during high seasons (Paris Fashion Week, New York holidays, Cannes Film Festival). When a hotel quotes you a special discount, it usually means their occupancy forecast for that date is low. Booking during low-occupancy periods often gets better rates.