Why is the room occupancy rate the main economic indicator of a hotel?

Because the cost of guest rooms is the lowest and the profit is the highest. Catering is different, but good hotels don't just rely on occupancy rates, but catering! Because no matter how high the occupancy rate is, if it is full tonight, it will be a 100% occupancy rate. If the hotel and catering business is good, if the turnover rate of each table is high, the profit can be doubled several times. Nothing is absolute and must be analyzed based on the actual situation.