Read the following and complete the tasks The Royal Hotel Has 300 Rooms The property sold rooms as follows May 1- 200 King rooms with
Read the following and complete the tasks
The Royal Hotel Has 300 Rooms
The property sold rooms as follows
May 1- 200 King rooms with a revenue of $24000
May 2 - 280 rooms sold with a revenue of $30000
May 3 - 300 rooms sold with revenue of $40, 500
May 4 - 205 rooms sold with revenue of $ 23,575
- Calculate the average daily rate (ADR)
- Calculate the percentage occupancy (Occ)
- Calculate the revenue per available room (RevPAR)
- How would you analyze the performance of the hotel over the four days.
May 1
May 2
May 3
May 4
ADR
Formula - Total Rev/Total rooms sold $
24000/200 =
120
30000/280 =
107.14
40500/300
= 135
23500/205
= 115
Occ
Formula - total rooms Rented/ total available space*100
200/300*100
= 66.67
280/300*100
= 93.33%
100%
205/300*100
= 68.33%
RevPAR $
Formula - Occupancy* ADR%
66.67%*120
= 80.00
93.33*107.14
= 99.99
100%*135
= 135
68.33%*115
= 78.58
Points of Consideration/ Analysis
- Observation of fluctuation in occupancy levels from May a low on 1 and an increase from 2 and 3 and then a reduction on May 4.
- Fluctuation resulting in changing revenue.
- The property managers may have implemented good revenue Management principles on May 3 and four by optimizing the room rates with the forecasted demand. This may explain the increased occupancy levels on May 3 and 4.
Step by Step Solution
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Analyzing the Royal Hotels Performance Task 1 Calculate ADR Occupancy and RevPAR The calculations provided are correctHeres a summary Date ADR Occupancy RevPAR May 1 120 6667 80 May 2 10714 9333 9999 ... View full answer
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Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
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