What does occupancy rate measure in real estate?

Occupancy rate is a crucial metric in real estate that specifically measures the percentage of available rooms that are actually sold or occupied over a specific period of time. This metric provides insight into the operational performance of a property, particularly in the hospitality sector, indicating how effectively a property is attracting guests. A higher occupancy rate suggests that a property is in demand and being utilized efficiently, while a lower rate may signal potential issues with marketing, pricing, or guest experience.

The other options, while related to the performance of a property, do not align with the definition of occupancy rate. Total revenue generated is a broader financial indicator that reflects all income but does not account for the number of rooms sold. The average price per room sold indicates pricing strategy and revenue generation per room but does not reflect occupancy directly. The number of guests in-house relates to current occupancy but does not provide the percentage perspective essential for calculating occupancy rate. Therefore, the correct option focuses on the specific aspect of occupancy being analyzed.