Net ADR Y ield Estimate Worksheet: City Center Plaza

A$.$ Based on Joel's calculated net ADR yields for each of the channels:

Which channel has the highest net ADR yield?

Which channel has the lowest net ADR yield?

B$.$ Based on Joel's calculated net total revenue achieved under each of the sales scenarios:

Which channel would generate the highest net total revenue?

Which channel would generate the lowest net total revenue?

C$.$ Based on this information, if you were Joel, how would you allocate the $100$ rooms? Explain your answer.

Joel knows that under his hotel's 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 hotel's CRS are $1$ percent of booked revenue plus $$2\mathrm{.}00$ per each room reserved.

Internet service provider $($IDS$)$ related charges paid by the hotel for rooms sold through

third$-$party Internet sites such as

uberhothotels.com are $$4\mathrm{.}00$ per room night booked.

Given this information, help Joel complete the revenue estimate worksheet and then

answer the questions that follow.