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 maximize 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 be2.5. 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.

The Marquis Hotel is considering a major romodeling effort and needs to determine the best rates and room to maxence reve Arion to comery Drewno Current 450. room capacity. The accompanying model and spreadsheet maximes revenus for the three types of come cuently valstande, adding sites to its room mix Based on an analysis of local competitors, suites cans for a rate of 100, and they expect to sell 20 per day to be the mostly -2.5. The hotel would want to keep the price of its bolon 5150 and 5200 Modify them to include and ind prices were Click the icon to view the model and spreadsheet Complete the table of prices that maximize total revenue Room type New Price Standard Gold $ Platinum $ Suite s (Round to the nearest cent as needed) Total revenue model th Lot Sprice of a standard room, G=price of a gold room, and P-price of a platinum room. Maximize the revenus, subject to constraints on the price range, and subject to the total room capacity of 450 Maximize Revenue = 6258 + 300G 1002 -4 88758? - 256 -0.35971p? 705 S 590 90s G 5110 1205 P 5149 1025 - 458758-25G -0.35971P 450 Total Room Capacity 450 Current Rate Average Daily Sold Elasticity $80.00 250 -1.5 $95.00 100 -2 $139 00 50 -1 Gold 1 Room type 2 Standard 3 4 Platinum 5 6 7 Room type 8 Standard Checkans als Now Price 0 Price Rango $70.00 Projected Rooms Sold Projected Revenue $90.00 - C2.02. (B8-82) C2/B23 -BE Print Done prices the Total revenue model X rice ZUS SS 905 GS110 1205 P5149 1025 -4.6875S-2.5G-0.35971P 5 450 t contas B C D Current Rate Average Daily Sold Elasticity $80.00 250 -1.5 $95.00 100 2 $131.0 50 -1 Total Room Capacity 450 A 1 Room type 2 Standard 3 Gold Platinum 5 6 7 Room Type 8 Standard 9 Gold 10 Platinum 11 12 New Price 0 0 Price Range Projected Rooms Sold Projected Revenue $70.00 590,00 C2-02-183-B2) (C2/B2 t" $90.00 $110.00 -C3-03:(09-03) (C3/B3 -BEN $120.00 $149.00-C4.4.(810-84) (C4/34 *B0E19 0 Check this Totals SUMEB.E10) SUME FOR Print Done