1. Thandi and Darla each own large 250-room select-service hotels near the busy city international airport. The following chart details the result of their most
1. Thandi and Darla each own large 250-room select-service hotels near the busy city international airport. The following chart details the result of their most recent room sales for a five-day period. Thandi's Hotel 250 rooms Darla's Hotel 250 rooms Rooms ADR Occupancy RevPAR ADR RevPAR Day Sold ($) of ($) Rooms Sold ($) Occupancy % ($) Monday 205 117.21 82.0 158 63.2 62.64 Tuesday 230 135.45 92.0 124.61 249 89.53 99.6 89.17 Wednesday 226 131.25 90.4 118.65 230 91.14 83.85 Thursday 228 132.22 120.58 248 92.15 99.2 91.41 Friday 195 78.0 89.86 138 101.51 56.03 Five-day total 126.80 81.8 76.62 a. What was Thandi's RevPAR on Monday? b. What was Darla's ADR on Monday? c. What was Darla's occupancy percentage on Wednesday? d. What was Thandi's occupancy percentage on Thursday? e. What was Thandi's ADR on Friday? f. What was Darla's occupancy percentage on Friday? g. How many rooms did Thandi sell during the five days? h. What was Thandi's occupancy percentage for the five days? i. What was Thandi's five-day Rev PAR total? j. How many rooms did Darla sell during the five days? k. What was Darla's ADR for the five-day period? 1. Did Thandi or Darla have a higher RevPAR during this five-day period? What do you think was the reason for this difference? 2. Jerielle Pelley is the front office manager at the 125-room Best Stay Inn. Her general manager has asked her to prepare a net ADR yield report for the hotel's prior month room sales. The manager has asked Jerielle to address several specific issues in the summary she is to prepare. Using the information provided below, help Jerielle calculate the answers she needs to complete her report. The reservation-generation (sales) fees that must be paid by the hotel include the following: Third-party Internet sales fee per room $28.00 Franchisor-Delivered sales fee per room $8.00 Travel agent sales fee per room $15.00 Based on those fees, calculate the net ADR yield percentages for the following distribution channels and then answer the questions that follow: Distribution Channel Room Rate ($) Fees Net ADR Net ADR Yield Third-party Internet Sales 167.95 Franchisor-Delivered Sales 165.90 Travel Agent Sales 151.50 Walk-Ins 149.95a. What is the net ADR yield on rooms delivered via the hotel's third-party Internet partners? b. What is the net ADR yield on rooms delivered via the hotel's franchisor? c. What is the net ADR yield on rooms delivered via travel agents? d. What is the net ADR yield on rooms sold to walk-ins? 3. Fadwa Al-Majeed is the general manager at the 125-room select-service Harley House Inn. She also serves as the property's revenue manager. The property primarily serves business travelers and is quite busy Monday through Thursday nights. The property is less busy on the weekends. Fadwa has just taken a call from Lawrence, a friend and the revenue manager at a hotel within her comp set. Because of an internal oversight, Lawrence's hotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchase that number of rooms from Fadwa at their previously agreed upon walk rate of $75.00 per night. Fadwa's normal ADR is $129.00 and her cost of cleaning a room is $17.00. Currently, Fadwa has 55 occupied rooms (arrivals and stayovers) on the books for that day. She forecast that she could sell, at her normal ADR, another 30 rooms by Saturday. Fadwa typically generates $8.00 in ancillary revenue from each of her occupied rooms. Before replying to Lawrence's request, she summarized her forecasted rooms sales-related information in a chart so she could better understand the impact of accepting or rejecting Lawrence's walked guests. Help Fadwa assess the potential impact on her hotel of agreeing to Lawrence's request and then answer the ques- tions that follow. Harley House Hotel: Saturday Forecast Total rooms available for sale 125 Current rooms sold forecast 55 Additional rooms to be sold forecast 30 Walk rooms requested 70 Normal ADR $129.00 Walk rooms ADR $75.00 Ancillary revenue per room $8.00 Room cleaning cost $17.00 Fadwa's Source of Business Calculation Next Saturday Night With Lawrence Walks Without Lawrence Walks Rooms Sold ADR $129.00 Total Rooms Revenue Estimate Daily per Room Ancillary Revenue $8.00 $8.00 Total Rooms plus Ancillary Revenue RevPOR Rooms Dept. Cost POR Net Total Revenue a. What would be Fadwa's ADR if she accepted all of Lawrence's walked rooms? b. What would be Fadwa's RevPOR with the walked rooms? c. What would be Fadwa's RevPOR without the walked rooms? d. What would be the net total revenue (RevPOR - Rooms dept. cost POR) difference in her hotel's revenue if Fadwa agree to take the rooms? e. What would be the percentage of difference in her hotel's net total revenues if Fadwa agree to take the rooms? f. If you were Fadwa, would you accept the walked rooms from Lawrence's hotel? Why or why not
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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