Lodging properties often enhance their understanding of room operations by including occupancy ratio results in their Statement of Income. Occupancy ratios serve as a measure of the success of the room operations in selling the main product of the property. To calculate these ratios, it is important to keep track of various room statistics throughout a given period. Here is a list that provides definitions for several common room statistics and occupancy percentages.
| S. No. | Metric Name |
Description |
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| (1) | Total Room Inventory |
Total number of guestrooms (keys) in a property, whether available for sale or not. Included are "Total Rooms Not Available for Sale (3)", "Rooms Occupied (8)", and "Vacant Rooms (9)".
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| (2) | Rooms Not Available for Sale: | ||||
| (2a) | Seasonally Closed Rooms |
When all operations of a hotel are closed for a minimum of 30 consecutive days due to seasonal demand patterns, then the rooms for this period should be removed from the annual salable inventory. The hotel must be consistently closed year-to-year.
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| (2b) | Extended Closed Rooms |
Those rooms were removed from salable inventory for a period of six consecutive months or more. Examples include rooms that are damaged due to a hurricane, earthquake, or fire, where there is intent to return the rooms to salable inventory.
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| (2c) | Rooms for Permanent House Use | Those rooms are removed from salable inventory for a minimum of six consecutive months for use by a hotel employee (e.g., manager’s apartment). | |||
| (3) | Total Rooms Not Available for Sale = [(2a) + (2b) + (2c)] | Total of rooms that are "Seasonally Closed (2a)", "Extended Closed (2b)", or used for "Permanent House Use (2c)". | |||
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(4)
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Rooms Available = (1) - (3) | "Total Room Inventory (1)" less "Total Rooms Not Available for Sale (3)". | |||
| (5) | Number of Rooms Sold: | ||||
| (5a) | Transient Rooms Sold |
Total rooms sold to guests on an individual basis. Included are rooms sold on a paid basis, as well as rooms sold on a gratis basis in connection with a promotion or contract.
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| (5b) | Group Rooms Sold |
Total rooms sold to guests as part of a group (10 rooms or more). Included are rooms sold on a paid basis, as well as rooms sold on a gratis basis in connection with a promotion or contract.
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| (5c) | Contract Rooms Sold |
Total rooms sold to guests as part of a special contract, generally of a longer-term nature (i.e., multiple weeks or months). Included are rooms sold on a paid basis, as well as rooms sold on a gratis basis in connection with a promotion or contract.
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| (6) | Rooms Sold = [(5a)+(5b)+(5c)] | Total rooms sold to "Transient (5a)", "Group (5b)" and "Contract guests (5c)". | |||
| (7) |
Complimentary Rooms Occupied
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Free rooms are provided to any guest, often for marketing purposes, but not related to an existing contractual relationship. Examples of complimentary rooms include rooms provided on a gratis basis to owners, employees, people on familiarization tours, friends, and family. Also included are rooms used by the hotel on a short-term basis (e.g., employee relocation, manager-on-duty, etc.).
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| (8) | Rooms Occupied = (6)+(7) | Total rooms sold to "Transient (5a)", "Group (5b)", and "Contract (5c)" guests and occupied by "Complimentary guests (7)". | |||
| (9) | Vacant Rooms = (4)-(8) or (9a)+(9b)+(9c): | "Rooms Available (4)" less "Rooms Occupied (8)" | |||
| (9a) | Rooms out-of-order |
Those rooms were removed from salable inventory for a period of less than six consecutive months due to renovation or a temporary fault or problem, rendering them inadequate for occupancy.
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| (9b) | Temporary Closed Rooms | Those rooms were removed from salable inventory on a discretionary basis for a period of less than six consecutive months. | |||
| (9c) | Rooms unoccupied | Those rooms are available for sale, but not occupied by a paying or complimentary guest. | |||
| (10) | Number of Guests: | ||||
| (10a) | Transient Guests | Total guests traveling as individuals | |||
| (10b) | Group Guests | Total guests traveling as part of a group | |||
| (10c) | Contract Guests | Total guests who occupy their room through a special contract. | |||
| (10d) | Complimentary Guests | Total persons staying on a complimentary basis as described in "Complimentary Rooms Occupied (7)" | |||
| (11) | Total Guests = (10a) + (10b) + (10c) + (10d) | Total "Transient (10a)", "Group (10b)", "Contract (10c)", and "Complimentary guests (10d)". | |||
| (12) | Arrivals | Number of room check-ins, both paying and complimentary | |||
Formulas:
1. Occupancy % = [(Rooms Sold) / (Rooms Available)] x 100
2. Occupancy % Transient = [(Transient Rooms Sold) / (Rooms Available)] x 100
3. Occupancy % Group = [(Group Rooms Sold) / (Rooms Available)] x 100
4. Occupancy % Contract = [(Contract Rooms Sold) / (Rooms Available)] x 100
5. Occupancy % Complimentary = [(Complimentary Rooms Occupied) / (Rooms Available)] x 100
6. Average Length of Stay = [(Rooms Occupied) / (Arrivals)] x 100