What's Occupancy Rate and Achieved Room Rate?

I’m a student from Singapore and I’m engaging in Hotel management study. I have a question as mentioned above when taking notes at indicators that use to classify a hotel.

Please let me know their formula as well as their function them, what do they imply?

hope to see your help

Great thanks!


Occupancy Rate = Rooms Sold / Rooms Available

Achieved Room Rate = ARR = Average Room Rate = Room Revenue / Rooms Sold

(A hotel’s occupancy percentage may be calculated on a daily, weekly, monthly, or annual basis)

ARR means the segment of a hotel, higher ARR means a better quality customer group, but can not reflect the management and operation situation of a hotel.

RevPar can indicate hotel operation situation better.

Revpar= Room Revenue / Rooms Available


Thanks a lot @emma Really appreciate your time and response. :slight_smile: