Hotel Revenue Glossary · Metrics

Paid Occupancy

The percentage of available rooms occupied by paying guests, excluding complimentary, house-use, and other non-revenue-generating room types. Paid occupancy reflects only rooms that contribute to room revenue.

Why it matters: Paid occupancy gives a clearer picture of commercial performance than total occupancy, which can be inflated by comps and house-use rooms. It is the more accurate denominator for calculating true ADR and assessing revenue generation.

All glossary terms Occupancy Complimentary Room ADR (Average Daily Rate)