Question

10 Problem 6 bibelsto Part A: The Aaron Hotel, a 100-room limited-service operation, has provided you with the following data for the months of May and June: on trom May June Single rooms sold 1,000 950 Double rooms sold 1,600 1,610 Room revenue $221,000 $222,720 Number of paid guests 4,520 4,653 Required: don b onsolosa toru 1. Compute the paid occupancy for May. OOS R o b o 2. What was the monthly ADR for June? OVO 3. What was the monthly RevPAR for May? 4. What was the average number of guests per double room during June? (Assume only one guest stayed in each single room.)

Answer 1

a) Paid occupancy for may = number of rooms sold/ number of rooms in property in period( here month)

= (1000+1600)/ (100*30)

= 2600/3000 = 86.67%

b) Monthly ADR for June ,

Average Daily Rate = Total rooms Revenue/ Total number of rooms sold

= 222,720/ (950+1610)

= $ 87.00

c) Monthly RevPAR for may ,

= Rooms Revenue/ Rooms available

= 221,000/100

= $ 2210.00

d) Average number of guests per double room during June ,

A Total paid guests = 4653

B Single rooms sold = 950 ( 1 guest per room as per question)

C Balance paid guests = 3703 (A-B)

D Double rooms sold = 1610

E Average guests in Double room = 2.3 (i.e C/B)