Question

Use the following table to answer questions 9 - 11. For this example, assume your hotel has 550 rooms. Actual Budget Variance 84% 70% Rooms Sold/Occupied Average Room Rate $182 $183 RevPAR $152.88 $128.10

Answer 1

Part 9) Amswer:+77

Actual rooms occupied = No of rooms*Occupied percentage = 550*84% = 462

Budgeted rooms occupied = No of rooms*Occupied percentage = 550*70% = 385

Variance = Actual rooms occupied-Budgeted rooms occupied = 482-385 = +77

Part 10) Answer: 19%

Percentage of RevPAR variance = (Actual RevPAR-Budgeted RevPAR)/Budgeted RevPAR = (152.88-128.1)/128.1 = 24.78/128.1 = 19.34%

Part 11) Answer: Volume

Because actual average room rate has decreased from budgeted average room rate. Room rate did not contributed more to increase RevPAR.