In 2015, hotel occupancies were at all-time highs throughout the industry. Since most hotels are still not struggling to fill rooms in 2016, we wondered: What is the optimal occupancy for hotels, with respect to profitability? Obviously, there is no magic occupancy for every hotel, but we can look at profitability for similar hotel segments at differing levels of occupancy using 2015 HOST data. For this analysis, we used the more than 5,000 hotels that submitted HOST data for 2015, and divided them into segments based on full-service versus limited-service, class and relative average daily rate. We then compared occupancy and gross operating profit (GOP) margins for the most common ADR ranges within each class and service level. If we chart the median GOP margins by occupancy, we can see where profit margins peak for similar hotel products and ADR levels. Get the full story at HNN