Karla Armbruster is the RM at a 200-room select service hotel near a major highway. Last year, her ADR was $149.99 and her property ran at 80 percent occupancy. Karla is considering the impact on her property of implementing programs that would increase her ADR by 5 percent. If she increases ADR by 5 percent, she anticipates a 77.5 percent occupancy next year.

Fill in the empty cells below and answer: what is more profitable in this case to maintain the last years occupancy percentage or to increase the ADR 5% even though it will result in lower occupancy percentage? (If you cant fill in the cells, just write your numeric answers in a list format and then answer the question in one short sentence.)

200-Room Property

Last Year Pricing

5% ADR Increase

Actual/Forecasted Occupancy %

80.0%

77.5%

Rooms sold

ADR

$149.99

Total Rooms Revenue

Controllable operating costs @ $45.00 per room

Gross operating profit

*Note: To arrive at the Gross Operating Profit, total controllable operating costs are deducted from Total Rooms Revenue