If a hotel has 200 rooms and sells 120, what is the occupancy rate?

To determine the occupancy rate of a hotel, you can use the formula:

Occupancy Rate = (Number of Rooms Sold / Total Number of Rooms) × 100.

In this case, the hotel has a total of 200 rooms, and 120 of those rooms were sold. Plugging the numbers into the formula gives:

Occupancy Rate = (120 / 200) × 100 = 0.6 × 100 = 60%.

This means that the hotel is operating at 60 percent occupancy, reflecting how many of its available rooms are being utilized. A 60 percent occupancy rate shows that a significant portion of the hotel’s capacity is being filled, which is generally considered a good indicator of demand in the hospitality industry. A higher occupancy rate is usually favorable as it suggests better financial performance for the hotel.