occupancy rate

Occupancy rate is a measure used in the hospitality and real estate industries to indicate how much of a property’s available space is being used or rented out. It is calculated by dividing the number of occupied units or rooms by the total available units or rooms, then multiplying by 100 to get a percentage. A high occupancy rate suggests strong demand and efficient use of space, while a lower rate may indicate excess capacity or lower demand. This metric helps business owners and investors assess performance, revenue potential, and market trends.