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Tiffany is the Front Office Manager at the 145-room limited-service Hilton. She also serves as her property's RM. Tiffany has just taken a call from
Tiffany is the Front Office Manager at the 145-room limited-service Hilton. She also serves as her property's RM. Tiffany has just taken a call from Larry, a friend and the RM at a hotel within her comp set. Because of an internal oversight, Larry's hotel is overbooked by 90 group rooms next Saturday. Larry would like to purchase that number of rooms from Tiffany at their previously agreed upon walk rate of $85.00. Tiffany's normal rack rate is $149.00. Currently, she has 75 occupied rooms (arrivals and stayovers) on the books for that day. She estimates that she could sell, at her normal ADR, another 30 rooms by Saturday. Complete the source of business worksheet and then answer the questions that follow. Group With Larry's Walks Without Larry's Walks Sold ADR $ $ 149.00 Total revenue estimate $ $ Daily per room additional revenue $ 10.00 $ 10.00 $ $ Total additional revenue RevPOR Total revenue Revenue Variance $ S Amount % $ 14.6 6.1. What would Tiffany's ADR be if she accepted all of Larry's walked rooms? (3 points) 6.2. What would be Tiffany's RevLOR with the walked rooms? (3 points) 6.3. What would be Tiffany's RevLOR without the walked rooms? (3 points) 6.4. What would be the dollar difference in her hotel's total revenue if Tiffany agreed to take the rooms? (3 points) 6.5. What would be the % difference in her hotel's total revenue if Tiffany agreed to take the rooms? (3 points) Page 7 of 10 6.6. If you were Tiffany, would you accept the walked rooms from Larry's hotel? Explain your answer. (6 points)
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