Basic Hospitality Terms and Formulae

We must know which visitors we can expect. For example, guests for a wedding (because a wedding will be held in one of the halls of the hotel), or businessmen who come for a business meeting, or a family on vacation.

May June July August September October November December Average Total Rooms Occupancy Occupied Percent 126 150 154 162 163 159 156 162 154 186 149 118 153 51.6% 61.4% 63.1% 66.2% 66.7% 65.3% 64.0% 66.4% 63.2% 76.4% 61.0% 48.3% 62.8% Total ADR $140.27 $139.29 $141.80 $140.20 $143.72 $141.90 $139.11 $141.54 $145.08 $157.36 $148.66 $137.38 $143.03

Divide the sale price of the one place by the annual rent for the other. The resulting number is the P/R ratio.

Item 7.|  |MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS|  | |25|  |

Interpret this interval. We are 95% sure that the prediction for house hold of 5 will lie between the value of (3337.9, 5877.2)

In the University of Phoenix simulation (2003), students are taken through the supply and demand of two-bedroom apartments in a city called Atlantis. The simulation itself is used as a tool to learn about the demand and supply curves as well as equilibrium. Other key learning points are the factors that affect supply and demand, the effect that a price ceiling has on the quantity demanded and the quantity supplied. Throughout the simulation, students determine the rental rates or how many apartments are rented out for a given month.

In the first scenario the monthly rental rate needed to be determined to reduce the vacancy rate to about 15%, while maximizing profits. The change in the demand was due to the rental rate; lowering the rental rate to $950 increased the quantity demanded to 1900 with a surplus of 100, and maximized profits to $1.81 million.

Rent will be collected on a monthly bases. Monthly rent was determined by multiplying the sale price of the subject property by 1% and adding in utilities and addition fees. This amount was calculated to be $1,485 monthly for year one. Which is high for this area. Vacancy losses were determined by multiplying potential gross income by 10%. Miscellaneous income will be $500.00 for the first year in fees for maintenance, repairs, and so on. This amount will be charged every two years. This resulted in an Effective Gross Income of $16,535.06. Operating expenses are broken in two categories: fixed expenses and variable expenses. In the fixed expenses I estimate yearly taxes and insurance based upon local rates. For variable expenses, I will not incur any utility or garbage collection expenses as the tenants will be paying these. The repairs and expenses were estimated to be $250 each and incurred every other year for $150 thereafter. This results in our total operating expenses. The capital expenditures equal our tenant improvements of

In conclusion, the simulation confronted the user with a variety of situations that affected the supply and demand of rental units. The prices and quantity supplied had to be adjusted according to the factors affecting the supply and demand. The key components from the reading material that were reinforced in the simulation were supply and demand, shifts in supply and demand, equilibrium, and price ceilings.

a. Fill in the formula for Average Fixed Cost, Average Variable Cost, Average Total Cost, Marginal Cost, Total Revenue, Marginal Revenue, and Total Profit at the top of the column in the gray section within the table.

4. Analysis: Open the Forte Hotel Data (Conjoint, 3 Analysis) data set in My Marketing Engineering, which has competed Steps 5 and 6 in the Tutorial for you. Follow Step 7 in the Tutorial, ((ME>XL==>Conjoint==>Run Analysis) and assess the viability of the four specific hotel concepts that Forte is exploring for the State College area. Base this evaluation on the preferences of a sample of 40 business travelers on that sheet (Exhibit 2) and the cost estimates summarized in Exhibit 3. The base cost to build each hotel room (without the attributes and options listed in Exhibit 3) is expected to be about $40,000 for a 150- to 200-room hotel, regardless of the mix of room

What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?

The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)

Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.

The researcher opines that by increasing prices a rise in the ADR can be achieved since it is a sum total of room revenue multiplied by occupancy %. However, while the prices are increased the existing guest may be resistance to pay the increased price with the same facilities provided by the hotel.