Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Makayla Jennings is the general manager at the Hampworth Inn. Le'Veon is the property's front office manager (FOM) and Latisha is the hotel's Director of

Makayla Jennings is the general manager at the Hampworth Inn. Le'Veon is the property's front office manager (FOM) and Latisha is the hotel's Director of Sales and Marketing (DOSM). All three serve on the hotel's RM committee. The hotel has 175 rooms available for sale. Next month, the hotel will serve as the headquarter hotel for the Retired Firefighters Association. The Association originally blocked 90 rooms per night for Thursday, Friday, and Saturday nights at a rate of $99.00 per night. All the rooms in their block have been picked up. The current rooms availability forecast for the three days of the meeting is as follows:

"The group has requested that Latisha add 20 rooms each night to their block at the originally contracted rate of $99.00. They state that they will use all of the additional rooms if they are made available, but if not they will move their remaining 20 attendees down the street to the Comfort Inn. Latisha is in favor of increasing the block and keeping the group together. Le'Veon is opposed. He is convinced that he can sell additional rooms at an ADR of $149.00 as indicated in the following spreadsheet he has prepared:"

"Under his plan, he states, “the hotel can maximize its ADR.” Based on Le'Veon's estimate of future sales to be made at rack rate, Makayla knows the hotel would sell any remaining rooms not held for the firefighters at the hotel’s full rack rate of $149 and thus maximize its occupancy percentage if she takes Latisha's advice. Help Makayla analyze the data she needs to answer the questions that follow by filling in the chart:"






Current Rooms Sales



ADR ($)ThursdayFridaySaturday
Total rooms available for sale
175175175
Firefighters’ rooms reserved99.00909090
All other rooms reserved149.00553545
Total rooms reserved?145125135
Rooms Available?305040
Additional group rooms requested?202020





Le'Veon’s Forecast



ADR ($)ThursdayFridaySaturday
Additional rooms to be sold at149.00204030






Under Latisha’s PlanUnder Le'Veon’s Plan

Rooms Sold??

Group Revenue??

Transient Revenue??

Total Revenue??

Occupancy %??

ADR??

RevPAR









a. What would the hotel’s ADR be under Le'Veon’s plan?

b. What would the hotel’s RevPAR be under Le'Veon’s plan?

c. What would the hotel’s ADR be under Latisha’s plan?

d. What would the hotel’s RevPAR be under Latisha’s plan?

e. Whose plan would you advise Makayla to support? Explain your rationale. Provide at least 2 reasons for the choice of plans.


Step by Step Solution

3.55 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Under Latishas Plan Under LeVeons Plan Rooms Sold Thursday 175 Friday 175 Saturday 175 Calculations below Table Thursday 165 Friday 165 Saturday 165 C... 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

Introduction to Corporate Finance What Companies Do

Authors: John Graham, Scott Smart

3rd edition

9781111532611, 1111222282, 1111532613, 978-1111222284

More Books

Students also viewed these Accounting questions

Question

Draw Fischer projections of L-glucose and L-fructose.

Answered: 1 week ago

Question

Explain the goal of behavior therapy.

Answered: 1 week ago

Question

What is the stage-gate or phase-review model? What are the stages?

Answered: 1 week ago