What is the formula for calculating occupancy rate?

The formula for calculating occupancy rate is indeed represented as Rooms Sold divided by Rooms Available. This metric is essential in the real estate and hospitality industries as it indicates how effectively a property is being utilized. A higher occupancy rate generally suggests better performance, as it reflects that more available rooms are being filled with guests.

In essence, the occupancy rate helps property owners and managers assess performance over a given period and make informed decisions, such as pricing strategies or marketing efforts. Understanding this metric is crucial, as it gives insight into profitability and operational efficiency within real estate ventures. The correct formula captures the relationship between the number of rooms sold and those that are available, offering a straightforward representation of occupancy levels.