Hotel Occupancy
The percentage of a hotel's available rooms that were actually occupied over the period -- the volume half of RevPAR, alongside average daily rate (the pricing half). Occupancy tells you how full the hotels were, a direct read on demand, but it is read together with ADR because the two trade off: a hotel can push occupancy toward 100% by cutting rates, or protect rate while accepting lower occupancy. The most profitable operators optimize the combination (RevPAR) rather than maximizing either alone. Occupancy also has a practical ceiling near the mid-to-high 90s, so at a full hotel further RevPAR growth has to come from rate.
Related terms
Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay
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