In this paper a conceptual and empirical basis is presented for the use of hotel occupancy data in monitoring hotel performance and marketing hotels. A model is developed differentiating between two fundamental aspects of a hotel's occupancy performance-its proportionality component, reflecting its occupancy response to national demand conditions and its competitive component, resulting from regional, local and unique factors affecting its occupancy performance. Competitive occupancy performance is further disaggregated into unique, common, systematic, derived and local components. The model is fitted to daily occupancy from a national sample of over 700 hotels. Some of the empirical results are presented, but attention is focussed on the application of the model in monitoring and marketing hotels.