Problem 17

The Hodges, a 300-room hotel, has provided you with the following data for the months of June and July:

June July

Single rooms sold 2,400 2,418

Double rooms sold 4,200 4,278

Room revenue $396,000 $339,000

Number of paid guests 9,900 9,910

Required:

1. Compute the following for June and July.
   1. Paid occupancy percentage
   2. Multiple occupancy percentage
   3. Average number of guests per double room sold (assume that only one guest stayed in each single room sold)
   4. Monthly ADR
   5. Monthly RevPar

2. Was the Hodges financial performance better in June or July? (Assume that fixed costs were constant and that the variable costs per room sold remained constant. Support your answer with detailed discussion.