Question
1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancyrate last year, he decided to reduce his room rates this year
1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancyrate last year, he decided to reduce his room rates this year by 10 percent to help increasesales and improve his RevPAR. This action resulted in an upswing in occupancy, from75 percent last year, to 85 percent this year; an increase of 13.3 percent.Last year, Antonios controllable operating costs were $61.00 per room. Thisyear, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antoniobetter understand the overall results of his rate reduction strategy by completinghis hotels May operating performance worksheet and then answering the questions that follow
Statistics | Last May | This May |
Occupancy % | 75% | 85% |
Rooms sold | ? | ? |
ADR | $129.99 | $116.99 |
Rooms revenue | ? | ? |
RevPAR | ? | ? |
Controllable operating profit | ? | ? |
GOPPAR | ? | ? |
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