Glossary

Occupancy rate

Occupancy rate is the share of available nights that were booked: nights booked divided by nights available. A unit booked 20 nights in a 30-night month runs 67% occupancy. On its own it hides pricing, since a cheap unit can fill easily, so operators read it alongside ADR, or combine the two as RevPAR.

Formula

Occupancy = nights booked ÷ nights available

Example

20 nights booked in a 30-night month is 67% occupancy.

Related terms

Run the numbers yourself with the free rental arbitrage calculator.