Teshia is the RM at the 250-room Springwood Suites hotel. The Springwood is a select service property whose F&B services consist only of complimentary breakfast. For a future date, Teshia has 100 rooms on the books and she forecasts that a total of 200 rooms can be sold that day at an ADR of $180.00.Teshias DOS states that a large convention is coming to the area on that date and the group rooms buyer for the convention has requested the hotel offer the group a rate of $150.00 for 100 of the propertys available rooms. The DOS believes the group will pick up all of its rooms and thus, with the 100 rooms already on the books and with only 50 of the additional room sales forecast by Teshia, the hotel will sell all 250 of its rooms on that day

A. If 100 rooms were committed at the requested group rate and the hotel indeed sold out, what would be the hotels rooms revenue on this date? ____________B. What would be the hotels GOP if no group rooms were allocated by Teshia and her original forecast of 200 sold rooms on this date were accurate? ____________C. What would be the hotels GOP if 100 group rooms were allocated by Teshia and the revised forecast of 250 sold rooms on this date were accurate? ____________D. Would you advise Teshia to offer the group rooms at $150.00 per night?_______E. What could be some reasons not related to this nights revenue that could motivate Teshia to offer the group the requested lower rate?

Original Forecast With Group Forecast Rooms available 250 Rooms Available 250 ADR $180.00 ADR 200 Rooms sold Rooms sold Room revenue $36,000 Room revenue Occupancy % (Rooms sold/Rooms available) Occupancy % (Rooms sold/Rooms available) 200 Rooms sold Distributable CPOR Rooms sold Distributable CPOR $68 Distributable operating expense Distributable operating expense $28 Undistributable cost per available room Undistributable cost per available room Rooms available 250 Rooms available (Continued) Original Forecast Undistributable operating expense With Group Forecast Undistributable operating expense $36,000 Room revenue Less Distributable CPOR Room revenue Less Distributable CPOR Less Undistributable operating expense Gross operating profit (GOP) Less Undistributable operating expense Gross operating profit (GOP) GOP % GOP %