Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of $117.98. What is the propertys franchise fee (1) on a per

A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of $117.98. What is the propertys franchise fee (1) on a per available room basis and (2) as a percentage of rooms revenue if the agreement required the hotel to pay a reservation fee of $7.65 per available room per month; a royalty fee of 5% of rooms revenue; an advertising fee of 2.3% of rooms revenue; and a frequent traveler program fee of $5.00 per occupied room. The hotel had frequent stay guests totaling 6% of the occupied rooms. The initial fee is a minimum of $45,000 plus $300 per room for each room over 150.

1. Please use the information from Question 1 to calculate the Total franchise fee.

Total franchise fee (round to a whole number) $ ___

2. Please use the information from Question 1 to calculate the Franchise fee on PAR basis.

Franchise fee on PAR basis (round to two decimal places) $___ PAR/yea

3.Please use the information from Question 1 to calculate the Franchise fee as a % of revenue.

Franchise fee as a % of revenue (round to two decimal places) ___%

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

Step: 3

blur-text-image

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

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

7th Edition

0324658052, 978-0324658057

More Books

Students also viewed these Accounting questions

Question

=+ What characters could become part of everyday culture?

Answered: 1 week ago

Question

=+1. Work in teams of four or five.

Answered: 1 week ago

Question

=+5. Now write the same commercial as a 15-second spot. Think about

Answered: 1 week ago