ANSWERS · REVENUE & DISTRIBUTION

What is a good hotel occupancy rate, and what is the average hotel occupancy?

5 hotel leaders answerRogier Ensel, Yaron Jansen, Moustafa Ahmed, Tim Boersma and Isaac J. CollazoPublished 7 Nov 2026

The average hotel occupancy says little on its own: for Rogier Ensel and Yaron Jansen a good rate sits between 80% and 90%. Rogier says a hotel in any market should be able to run 80% occupancy; Yaron sees operations work best at 85% to 90%, since 100% can mean the rate was too low. Moustafa Ahmed adds that 60% can be a great number with the right rate. Tim Boersma warns that 70% over a year can hide a full summer and 30% in January and February, and Isaac J. Collazo weighs growth against new supply.

This answer is part of our guide to hotel revenue management.

In their own words

Rogier Ensel
Owner / founder (revenue management consultancy), RevGen
“I don't think there is because both parties are dealing with banks ... in every market, in every corner of the world, you should be able to run a 80% occupancy.”
Listen from 18:20Occupancy first, ADR second: revenue management for independents
Yaron Jansen
Director of Operations, Hotel De L'Europe Amsterdam
“Especially with rooms, of course, it's always the balance between the room rate and the occupancy. So being at 100% could also mean that your room rate has been a bit too low. ... normally around 90%, between 85% to 90%, everything goes the best in the best way possible.”
Listen from 12:59Purpose Over Process: Leading Luxury Hospitality
MA
Moustafa Ahmed
Cluster Reservations Manager, Banyan Tree Dubai
“60%, 90%, or 100%. That doesn't mean that actually the hotel is full and this hotel is doing well. ... But what is your pricing strategy? What is your average daily rate, or what is your RevPAR?”
Listen from 20:08Reservations is your sales engine
TB
Tim Boersma
Revenue Manager, Room Price Genie
“That can be something, and you can be fully booked during all summer, and you get 70% occupancy across the year. ... maybe that €100 is slightly too much. ... It can also be that there are not more people willing to book anyways.”
Listen from 30:20The Pricing Mindset Shift Holding Hotels Back
Isaac J. Collazo
Vice President, Analytics, STR (Smith Travel Research)
“Wait a minute, mister, owner. Remember, when we first started this hotel, there was only five hotels. Now there's 25. So we're still growing or maybe we're holding our own, and that's okay.”
Listen from 28:09Smith Travel Research: Unlocking Hotel Data Power