A hotel reported 28,700 rooms sold with a total of 34,400 guests. What was the d

Question

A hotel reported 28,700 rooms sold with a total of 34,400 guests. What was the double occupancy rate?

Double Occupancy Rate

A hotel has 100 room and 72% occupancy. The revenue is $5,623,920. Compute the average room rate (ADR).

Average Room Rate

Using the following information, determine the average single and double room rates. 120 rooms were sold , 48 rooms were double occupied and the spread is $18.

Double Occupancy Rate

Verify the calculated rates

Guests 34,400 Rooms occupied 28,700 Rooms with more than 1 guest

Double Occupancy Rate

A hotel has 100 room and 72% occupancy. The revenue is $5,623,920. Compute the average room rate (ADR).

Number of rooms 100 Occupancy rate 72.0% Revenue $5,623,920 Rooms sold

Average Room Rate

Using the following information, determine the average single and double room rates. 120 rooms were sold , 48 rooms were double occupied and the spread is $18.

Rooms sold per day 120 Rooms double occupied 48 % double occupied 40% Spread on room rate $18.00 Average daily revenue $21,600.00 Average Daily Rate (ADR) Premium Single Occupancy Rate

Double Occupancy Rate

Verify the calculated rates

Room # Dollars Single rooms Double rooms Daily Revenue

Explanation / Answer

Part 1 :  Calculation of room with more than 1 guest

Let room with more than one guest = x

Total guests = 34,400, Total Rooms = 28,700, Rooms with only one guest = 28,700 - x

From all the above values the equation can be made mentioned as follows:-

Total guests = 2x + (28,700-x)*1 = 2x+28,700-x

34,400 = 28,700+x

x = 34,400-28,700 = 5,700 rooms

Therefore the Rooms with more than one guest is 5,700.

Double occupancy rate = (Room occupied with more than one guest/Total Rooms)*100

= (5,700/28,000)*100 = 20.36%

Part 2 : Calculation of Average Room rate

Rooms sold = Total occupied rooms = 100 rooms*72% = 72 rooms

ADR = Total revenue/Total occupied Rooms = $5,623,920/(100*72%) = $5,623,920/72 rooms = $78,110

Part 3 : Calculation of Single and double occupancy rate

Average daily rate (ADR) = Average Daily Revenue/Rooms sold per day = $21,600/120 = $180

Premium = Spread*Double occupancy rate = $18*40% = $7.2

ADR = Premium+Average Single rate

$180 = $7.2+Average single rate

Average Single rate = $180 - $7.2 = $172.8

Average Double Rate = Single Average rate + Spread = $172.8+$18 = $190.8

Verify the calculated rates

Single Rooms = $172.80*(120-48)rooms = $12,441.60

Double Rooms = $190.80*48 rooms = $9,158.40

Average Daily revenue = $12,441.60+$9,158.40 = $21,600

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