How to Calculate Occupancy Percentage, ADR and RevPAR
Occupancy percentage is occupied units divided by available units for the same period. For hotels and short-term rentals it sits alongside average daily rate and RevPAR, and reading all three together is the only way to judge performance.
The three core metrics
- Occupancy = occupied room nights ÷ available room nights × 100.
- ADR = room revenue ÷ occupied room nights.
- RevPAR = room revenue ÷ available room nights, which equals occupancy × ADR.
- Available nights = number of rooms × nights in the period.
Why RevPAR settles arguments
Occupancy alone can be bought with discounts, and ADR alone can be protected by leaving rooms empty. RevPAR combines both into revenue per available room, so a property at 95% occupancy and a weak rate can be outperformed by one at 78% occupancy holding its price. Judge pricing decisions on RevPAR, then look at profit after the cost of servicing those extra rooms.
Other occupancy contexts
- Rental property: occupied days ÷ available days, with vacancy as the complement.
- Offices and coworking: desks used ÷ desks available at peak or on average.
- Care and student housing: beds filled ÷ beds licensed.
- Venues: attendees ÷ capacity, which drives per-head cost.
Common measurement errors
Excluding nights you chose not to sell inflates the rate. Out-of-order rooms normally stay in the available count unless they are out of inventory long term. Comparison is only fair against the same period last year, because seasonality dominates almost every accommodation market.
Key takeaways — Occupancy Percentage Calculator
- Occupancy % = occupied ÷ available × 100.
- RevPAR = occupancy × ADR, and it is the metric that matters.
- Keep unsold and out-of-order inventory in the denominator.