Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jerielle Pelley is the front ofce manager at the 125-room limited-service Best Stay Inn.She also serves as her propertys RM. Jerielle has just taken a

Jerielle Pelley is the front ofce manager at the 125-room limited-service Best Stay Inn.She also serves as her propertys RM. Jerielle has just taken a call from Lawrence, a friendand the RM at a hotel within her comp set. Because of an internal oversight, Lawrenceshotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchasethat number of rooms from Jerielle at their previously agreed upon walk rate of $75.00.Jerielles normal rack rate is $129.00. Currently, she has 55 occupied rooms (arrivalsand stayovers) on the books for that day. She estimates that she could sell, at her normal ADR, another 30 rooms by Saturday. Complete the source of business worksheet andthen answer the questions that follow

Source of Business Calculation
Group With Lawrence Walks Without Lawrence Walks
Sold
ADR $129.00
Total revenue estimate
Daily per room ancillary revenue $8.00 $8.00
Total ancillary revenue
RevPOR
Total revenue
Revenue Variance Amount %
$ 14.6%

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

Recommended Textbook for

International Project Finance

Authors: Felix I. Lessambo

1st Edition

3030963896, 978-3030963897

More Books

Students also viewed these Finance questions

Question

Would you rather have higher pay or better benefits? Why?

Answered: 1 week ago