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In 2017 the Pacifica Hotel obtained an occupancy percentage of 78% and an ADR of $159.00. In 2018, management lowered the nightly rates to attract

In 2017 the Pacifica Hotel obtained an occupancy percentage of 78% and an ADR of $159.00. In 2018, management lowered the nightly rates to attract more business to the property and achieved an occupancy percentage of 81% and an ADR of $154.00.

3.Describe the effect of using this strategy using the key ratios.

4.Should management lower the rates again in 2019?

5.Why?

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