Wanda Spencer, a consultant for Seedland Consultants, determines that the average daily occupancy for Center Town’s five lodging facilities with a total of 1,000 rooms is 70%. She forecasts an annual room demand growth for the next 5 years of 8%.

Required:

1. What is the projected number of room nights to be sold each year for the next 5 years?

2. If no additional rooms are constructed, what will be the daily paid occu- pancies at the end of each of the next 5 years?