Question
Anne Robinson, the owner of Beachfront Hotel asked you to evaluate the performance of the hotel related to the other four hotels in a small
Anne Robinson, the owner ofBeachfront Hotelasked you to evaluate the performance of the hotel related to the other four hotels in a small town in the north of Queensland. She provided the following data collected from her hotel and from the other four hotels in the last 30 days:
Hotel
Number of rooms
Market share capacity
Room-nights sold
Room-nights share
Room revenue
Room revenue share
Pinelands
90
18%
2,565
24.19%
$243,675
18.83%
Burrows
110
22%
2,310
21.78%
$300,300
23.21%
Collins
120
24%
1,800
16.97%
$270,000
20.87%
Sunview
100
20%
2,250
21.22%
$270,000
20.87%
Beachfront
80
16%
1,680
15.84%
$210,000
16.23%
Total
500
100%
10,605
100%
$1,293,975
100%
Required:
a. Calculate the occupancy, ADR, and RevPar penetration indices for the Beachfront Hotel.
b.How well does the Beachfront Hotel appear to be performing with respect to revenue management? Explain your answer.
c.Based on your analysis, what would be your recommendation to Anne Robinson to improve RevPar?
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