Occupancy Rate

Occupancy rate is the simplest and most-tracked operational KPI in coliving. It measures how full the property is over a period. Like ADR, occupancy alone doesn't tell you about pricing power, RevPAB integrates the two.

Occupancy is the lagging indicator of demand health and the leading indicator of NOI compression. In coliving specifically, occupancy below ~80% over multiple months almost always signals a structural issue (pricing, marketing, product, regulatory) rather than seasonality.

The denominator deserves careful definition. **Available bed-nights** excludes beds that are intentionally offline, units in renovation, beds held for a confirmed move-in next week, beds blocked for an event, and the choice of what to exclude can swing reported occupancy by 3-5 percentage points. Most institutional reporting uses the strictest definition: total physical bed-nights regardless of operational status. Operator pitch decks often use the loosest definition: 'sellable inventory only' (excluding renovations + held beds), which inflates the headline number.

Three occupancy variants you'll see in the wild: **physical occupancy** (occupied ÷ total physical beds), **economic occupancy** (revenue earned ÷ revenue if 100% leased at asking rate, which captures the impact of concessions), and **stabilized occupancy** (the long-run baseline once lease-up is complete, typically 88-95%). When comparing two operators, always ask which variant they're reporting. The same building can show 91% physical and 84% economic when discounting is heavy.