Question
Joel is the RM for the City Center Plaza hotel. He knows that under his franchise agreement, he pays an 8 percent franchise fee and
Joel is the RM for the City Center Plaza hotel. He knows that under his franchise agreement, he pays an 8 percent franchise fee and 3 percent marketing fee on all revenue generated from room sales. Additional fees for using the hotels CRS are $2.00 per each room reserved. Internet service provider (IDS) related charges paid by the hotel for rooms sold through Internet sites including uberhothotels.com are $10.00 per room sold. Given this information, help Joel complete the revenue estimate worksheet presented below.
Net ADR Yield Estimate Worksheet: City Center Plaza | ||
Distribution Channel | Group rooms | Third-party merchant |
Rooms sold | 80 | 100 |
Standard rate | $185 | $160 |
Gross revenue |
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Franchise fee (8%) |
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Franchise marketing fee (3%) |
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Franchisor's CRS fee ($2 per room) |
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IDS fee |
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Net total revenue |
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Net ADR yield |
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