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Testia 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
Testia 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. Teshia's 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 property's 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. 250 Original Forecast Rooms available ADR Rooms sold Room revenue $180.00 200 $36,000 With Group Forecast Rooms available 250 ADR $168.00 Rooms sold 250 Room revenue $42,000.00 Occupancy % (Rooms sold/Rooms available) Occupancy % (Rooms sold/Rooms available) 80% 100% 200 Rooms sold Distributable CPOR Rooms sold Distributable CPOR 250 $68.00 $68 Distributable operating expense $13,600 Distributable operating expence $17,000.00 $28 Undistributable cost per available room Rooms available Undistributed operating expense Undistributable cost per available room Rooms available Undistributable operating expense $28.00 250 250 $7,000 $7,000.00 Room revenue $36,000 Less Distributable CPOR $13,600 Less Undistributable operating expense $7,000 Gross Operating Profit (GOP) | $15,400 | GOP % 42.78% Room Revenue $42,000.00 Less Distributable CPOR $17,000.00 Less Undistributable operating expense $7,000.00 Gross Operating Profit (GOP) $18,000.00 GDP % 42.86% A. If 100 rooms were committed at the requested group rate and the hotel indeed sold out, what would be the hotel's roomis revere on this date? B. What would be the hotel's 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 hotel's 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 night's revenue that could motivate Teshia to offer the group the requested lower rate? Testia 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. Teshia's 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 property's 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. 250 Original Forecast Rooms available ADR Rooms sold Room revenue $180.00 200 $36,000 With Group Forecast Rooms available 250 ADR $168.00 Rooms sold 250 Room revenue $42,000.00 Occupancy % (Rooms sold/Rooms available) Occupancy % (Rooms sold/Rooms available) 80% 100% 200 Rooms sold Distributable CPOR Rooms sold Distributable CPOR 250 $68.00 $68 Distributable operating expense $13,600 Distributable operating expence $17,000.00 $28 Undistributable cost per available room Rooms available Undistributed operating expense Undistributable cost per available room Rooms available Undistributable operating expense $28.00 250 250 $7,000 $7,000.00 Room revenue $36,000 Less Distributable CPOR $13,600 Less Undistributable operating expense $7,000 Gross Operating Profit (GOP) | $15,400 | GOP % 42.78% Room Revenue $42,000.00 Less Distributable CPOR $17,000.00 Less Undistributable operating expense $7,000.00 Gross Operating Profit (GOP) $18,000.00 GDP % 42.86% A. If 100 rooms were committed at the requested group rate and the hotel indeed sold out, what would be the hotel's roomis revere on this date? B. What would be the hotel's 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 hotel's 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 night's revenue that could motivate Teshia to offer the group the requested lower rate
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