Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A hotel in Kentucky is running an occupancy of 7 9 . 6 % annually based on 1 3 7 rooms. Its market segments include

A hotel in Kentucky is running an occupancy of 79.6% annually based on 137 rooms. Its market segments include toursists (44%) and commercial (56%). The rack rates for the hotel are $179.00 for singles and $211.00 doubles in both segments. The discount rates used are 15% for tourists and 25% for commerciall. The percentage of distribution single/double are: 80/20 for tourists, and 60/40 for commercial. The estimated number of bookings paying rack versus discount are 15/85 and 10/90 respectively.
Construct an ADR table calculate the ADR for each segment and the hotel overall.

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

Students also viewed these Finance questions