Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 ? ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unclaimed Property A Reporting Process And Audit Survival Guide

Authors: Tracey L. Reid

1st Edition

0470278242, 978-0470278246

More Books

Students also viewed these Accounting questions