1. Iota Hospitality

Scenario: Cost Management and Control

Data: Iota Hospitality operates a chain of hotels and resorts. The company reported the following costs for one of its properties for the month of June 2023:

• Room Revenue: $300,000
• Variable Costs: $100,000
• Fixed Costs: $50,000
• Occupancy Rate: 80%

Requirements: Calculate Iota Hospitality's revenue per available room (RevPAR) and average daily rate (ADR) for the property. Analyze the cost structure and cost per occupied room for the property. Discuss how Iota Hospitality can use cost management techniques to improve profitability. Evaluate the impact of occupancy rate fluctuations on the property's financial performance. Recommend strategies for Iota Hospitality to optimize cost management and enhance profitability.