The Marquis Hotel is considering a major remodeling effort and needs to determine the best rates and room sizes to maximize revenues. Although the rooms may be renovated, there are no plans to change the current 450-room capacity. The accompanying model and spreadsheet maximizes revenues for the three types of rooms currently available, standard, gold, and platinum. Suppose that the hotel is considering adding suites to its room mix. Based on an analysis of local competitors, suites can sell for a rate of $180, and they expect to sell 20 per day to business travelers. The price elasticity of demand is estimated to be -2.5. The hotel would want to keep the price of suites between $150 and $200. Modify the model to include suites and find prices that will maximize total revenue. Click the icon to view the model and spreadsheet.