Utilization Rate
Stop-N-Stay and Paradise Inn operate motels across the northwest. Operating data for each chain are as follows:
| Hotels | Rooms Per Hotel | Toal Rooms | |
| Stop-N-Stay | 50 | 180 | 9,000 |
| Paradise Inn | 60 | 175 | 10,500 |
| Room Nights Occupied | Average Daily Room Rates | |
| Stop-N-Stay | 239,940 | $125 |
| Paradise Inn | 292,950 | $95 |
Determine the occupancy Rate for Stop-N-Stay for August ______%
Determine the occupancy rate for Paradise Inn for August______%
Determine the total room revenue for each chain for August.
Stop-N-Stay $_____
Paradise Inn $_____
| Hotels | Rooms Per Hotel | Total Rooms | Total room nights | |
| Stop-N-Stay | 50 | 180 | 9,000 | 9,000 x 31 = 279,000 |
| Paradise Inn | 60 | 175 | 10,500 | 10,500 x 31 = 325,500 |
| Room Nights Occupied (i) | Average Daily Room Rates (ii) | Total room revenue (i) x (ii) | |
| Stop-N-Stay | 239,940 | $125 | $29,992,500 |
| Paradise Inn | 292,950 | $95 | $27,830,250 |
occupancy Rate for Stop-N-Stay for August = Room Nights Occupied/Total room nights
= 239,940/279,000
= 86%
occupancy rate for Paradise Inn for August = 292,950/325,500
= 90%
total room revenue for Stop-N-Stay = $29,992,500
Total room revenue for Paradise Inn = $27,830,250
Utilization Rate Stop-N-Stay and Paradise Inn operate motels across the northwest. Operating data for each chain...