the owners of the Knightsbridge invest $5,000,000 in the hotel and expect a 15% annual return to their investment.

the hotel income tax rate is 25%

the operating expense is calculated at $1,200,000; besides, it pays $500,000 for taxes, insurance, and leases.

The income from Food and Beverages is $200,000

The income from Events is $1,500,000;

The director of rooms estimates direct operating expenses to be $8 per occupied room. The Knightsbridge has 125 rooms and is expected to run on an 80% occupancy.

Calculate average room rate for the Knightsbridge