What is Occupancy Rate?
The percentage of available rooms that are occupied over a given period. Calculated as rooms sold divided by rooms available. The most intuitive hospitality metric, but dangerous when optimized in isolation from ADR and RevPAR.
My perspective
In practice
High occupancy at low rates can be worse than moderate occupancy at premium rates. The goal is to find the sweet spot where occupancy and ADR together maximize RevPAR.