Question
1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this
1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this year by 10 percent to help increase sales and improve his RevPAR. This action resulted in an upswing in occupancy, from 75 percent last year, to 85 percent this year; an increase of 13.3 percent. Last year, Antonio's controllable operating costs were $61.00 per room. This year, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antonio better understand the overall results of his rate reduction strategy by completing his hotel's 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 cost | ||
Gross operating profit | ||
GOPPAR |
A. What was Antonio's RevPAR "Last May?"
B. What was Antonio's RevPAR "This May?"
C. What was Antonio's GOPPAR "Last May?
D. What was Antonio's GOPPAR change from last May to this May:
In Dollars?
In %?
E. Compare Antonio's GOPPAR performance this year versus last year. How effective do
you believe Antonio was in devising and implementing his revenue optimization
strategy?
2) Paige Vincent is the RM at the City Center Novotel. For over 12 months, she has been working hard to improve the performance of her hotel. Paige just received the following performance data. Help her understand the revenue optimization trends for her property by completing the chart. Then, you will be asked to evaluate her efforts.
A. What was Paige's occupancy index this month?
B. What was Paige's ADR index for the last three months?
C. What was Paige's RevPAR index this month?
D. What was Paige's RevPAR for the last 12 months?
E. Compare Paige's property performance for the past 12 months to that of her competitive set. How effective do you believe Paige has been in devising and
implementing her revenue optimization strategy?
City Center Novotel Performance: | |||
Occupancy % | Novotel | Comp Set | Index |
This month | 57.2 | 58.1 | |
Last 3 months | 55.1 | 57.7 | |
Last 12 months | 51.3 | 55.6 | |
ADR | |||
This month | $266.57 | $270.15 | |
Last 3 months | $244.91 | $269.69 | |
Last 12 months | $231.45 | $268.95 | |
RevPAR | |||
This month | |||
Last 3 months | |||
Last 12 months |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started