---
title: Hotel Occupancy Rate: Formula, Example & Pitfalls | bedsKey
description: Occupancy rate is room nights sold divided by room nights available. The formula, a worked example, bed-level occupancy for hostels and common mistakes.
canonical: https://bedskey.com/glossary/occupancy-rate/
updated: 2026-09-24
publisher: bedsKey (Innovate Solution)
---

# What is hotel occupancy rate?

**In short:** Occupancy rate is the share of a hotel's available rooms that were sold in a period, expressed as a percentage. It is calculated as room nights sold divided by room nights available, multiplied by 100. Hostels selling dorm beds often measure the same ratio per bed instead of per room.

Updated September 2026

## Occupancy rate formula

> **Occupancy rate = Room nights sold ÷ Room nights available × 100**

## Worked example

A 40-room hotel over a 30-day month has 1,200 room nights available (40 × 30). It sells 870 room nights.

| Figure | Value |
|---|---|
| Room nights available | 1,200 |
| Room nights sold | 870 |
| **Occupancy rate** | **870 ÷ 1,200 × 100 = 72.5%** |

## Room occupancy vs bed occupancy

A hostel with a 6-bed dorm that sells 4 beds has sold "one room" but only two thirds of its beds. Measuring by room would show the dorm as full. Properties that sell individual beds usually track occupancy per bed so that empty bunks are visible.

## Common mistakes

- **Mixing definitions** — decide whether out-of-order rooms and complimentary stays count, and keep the rule the same every period.
- **Reading occupancy alone** — high occupancy at a low rate can earn less than moderate occupancy at a better rate; compare with [ADR](https://bedskey.com/glossary/adr/) and [RevPAR](https://bedskey.com/glossary/revpar/).
- **Looking only backwards** — occupancy on the books for future dates, and how fast it is building, tells you more about pricing decisions than last month's figure.

## How bedsKey measures occupancy

bedsKey reports occupancy % with ADR, RevPAR and room nights by day, week, month or custom range, and shows occupancy on the books ahead in the forecast and pickup report, with pickup over the last 1, 7 or 30 days. Inventory is held at room level and bed level in the same calendar, so hostels and hotels use the same system. Occupancy can also drive price: bedsKey's auto-yield rules move the rate as the property fills, always inside a floor and a ceiling you set.

## Frequently asked questions

### What is a good hotel occupancy rate?

It depends heavily on market and season. Track occupancy against your own history and local competitors, and read it with ADR and RevPAR rather than on its own.

### Do out-of-order rooms count in occupancy?

Practice varies. Some hotels exclude rooms taken out of order from rooms available, others keep them in. Pick one definition and apply it consistently.

### How do hostels measure occupancy?

Usually per bed: beds sold divided by beds available. A dorm with some empty bunks is then shown as partly occupied instead of full.

## Related terms

- [ADR](https://bedskey.com/glossary/adr/)
- [RevPAR](https://bedskey.com/glossary/revpar/)
- [Bed-level inventory](https://bedskey.com/glossary/#bed-level-inventory)
- [Night audit](https://bedskey.com/glossary/night-audit/)
- [bedsKey Reports & Analytics](https://bedskey.com/features/reports-analytics/)
- [Full glossary](https://bedskey.com/glossary/)

## Talk to bedsKey

Book a demo: https://bedskey.com/contact/ · sales@bedskey.com