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The Saeun Angel Inn is a 100-room inn that was built ten years ago for a total project cost of $7,500,000. The market value of
The Saeun Angel Inn is a 100-room inn that was built ten years ago for a total project cost of $7,500,000. The market value of the facility is now estimated at $10,000,000 and the General Manager estimates that the level of guest services is worth at least $2,000 per room per year. A close competitor of the Amado Inn charges $80 per night per room. According to the $1 per $1,000 approach to pricing rooms, what should the price of a room night be at the Amado Inn?
a. $59
b. $75
c. $78
d. $86
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