From “Ask Kit!”:
Q: Many inn owners quote occupancy rates that seem very high for their area and amenities (especially when trying to sell their business). They seem to making up their own formula. Could you please publish a formula for figuring occupancy that gives a good idea of the actual business that a particular B&B has?.
A: I’d like to think that the inns that are selling have better business than those who aren’t selling, but….
I have a “black-and-white” approach to occupancy rate. And for an existing business it’s not a matter of projecting, it’s a real number — it’s reality. I frankly think that actual income is a better gauge of the inn’s business succes than occupancy rate, but I’ll address your question anyway.
Occupancy rate is calculated by taking the actual number of rooms rented divided by the number of rentable rooms. The time frame can be a week, month, or year — depending on the historic window of time available to you.