Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Casa Vana Inn has 500 guest rooms, has an ADR of $110 per room, and is currently operating at an 80% average occupancy. The hotel

Casa Vana Inn has 500 guest rooms, has an ADR of $110 per room, and is currently operating at an 80% average occupancy. The hotel offers 200 one-bed and 300 two-bed guestrooms. Management has established single and double rack rates for each room type. Any one-bed room as a single at $100; as a double, it sells for $120. Any two-bedroom sold as a single is priced at $115; as a double sell for $ 130.

Hint:(Assume Casa Vana 210 of 400 rooms sold at 70% occupancy)

Calculate

1. Potential Average Single Rate

2. Potential Average Double Rate

3. Multiple Occupancy Percentage

4. Rate Spread

5. Potential Avg. Rate

6. Room rate achievement factor

7. Yield Statistic

Step by Step Solution

3.37 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

Step 1 onebed 200 twobed 300 Total Bed 500 as a single 100 115 as a double 120 130 Occupancy 80 50080100400 rooms are occupied Average Daily Rate 110 ... 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_2

Step: 3

blur-text-image_3

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

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan K. Wolcott

2nd Edition

978-0-470-7694, 0470769424, 978-0470769423

More Books

Students also viewed these Accounting questions

Question

How are the master budget and flexible budget related?

Answered: 1 week ago