Question
The operation team of H hotel, which has 25 rooms on daily basis, has projected that the occu-pancy will be 60.00% with total revenue of
The operation team of H hotel, which has 25 rooms on daily basis, has projected that the occu-pancy will be 60.00% with total revenue of $620,000 and total expenses of $50,000 for the next year. The income tax bracket is 40.00%. Assume that there are only single and double rooms for H with a double occupancy of 70.00% and the double rooms are sold at a percentage markup of 20.00% over singles. Based on the information given, what are the individual average daily room rates (ADRs) for both single and double rooms for H hotel for the next year (assume that there are 365 days in a year)
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