Jerielle Pelley is the front ofce manager at the 125-room limited-service Best S

Question

Jerielle Pelley is the front ofce manager at the 125-room limited-service Best Stay Inn.She also serves as her property’s RM. Jerielle has just taken a call from Lawrence, a friendand the RM at a hotel within her comp set. Because of an internal oversight, Lawrence’shotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchasethat number of rooms from Jerielle at their previously agreed upon walk rate of $75.00.Jerielle’s normal rack rate is $129.00. Currently, she has 55 occupied rooms (arrivalsand stayovers) on the books for that day. She estimates that she could sell, at her normal ADR, another 30 rooms by Saturday. Complete the source of business worksheet andthen answer the questions that follow

Source of Business Calculation Group With Lawrence Walks Without Lawrence Walks Sold ADR $129.00 Total revenue estimate Daily per room ancillary revenue $8.00 $8.00 Total ancillary revenue RevPOR Total revenue Revenue Variance Amount % $ 14.6%

Explanation / Answer

Work Sheet:

With Lawrence Walks Without Lawrence Walks Sold 125 85 (55+30) ADR 75 129 Total Revenue Estimate 9,375 10,965 Daily per room ancillary Rev. 8 8 Total ancillary Rev 1,000 680 Rev.POR 83 137 Total Revenue 10,375 11,645 Revenue Variance 1,270

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