Question

What is the relative growth difference in rooms revenue for a 205-room hotel that experienced an occupancy in 2006 of 80.4% and 82.7% in 2005? The hotel achieved an average room rate in 2006 of $198.36 and $179.55 in 2005.

Round your answer (%) to one decimal point.

Relative growth difference = ___ %

Answer 1

Ans: Relative growth Difference in room revenue= Room revenue in 2006- room revenue in 2005

=> (occupancy Rate * room rate *205 {for 2006} - (occupancy Rate * room rate *205 {for 2005}

=> (198.36* 80.4%*205 )- ( 179.55*82.7%*205)

=> ( 32,693.69- 30,440)

=> 2,253.69

Relative growth difference in (%)= Relative growth difference/ Room revenue in Base year*100  

=2,253.69/ 30,440*100

= 7.40%

Note: Base year is 2005