1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this year by 10 percent to help increase sales and improve his RevPAR. This action resulted in an upswing in occupancy, from 75 percent last year, to 85 percent this year; an increase of 13.3 percent. Last year, Antonio’s controllable operating costs were $61.00 per room. This year, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antonio better understand the overall results of his rate reduction strategy by completing his hotel’s May operating performance worksheet and then answering the questions that follow. Statistics Last May This May Occupancy % 75% 85% Rooms Sold ADR $129.99 $116.99 Rooms Revenue RevPAR Controllable operating cost Gross operating profit GOPPAR
1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this year by 10 percent to help increase sales and improve his RevPAR. This action resulted in an upswing in occupancy, from 75 percent last year, to 85 percent this year; an increase of 13.3 percent. Last year, Antonio’s controllable operating costs were $61.00 per room. This year, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antonio better understand the overall results of his rate reduction strategy by completing his hotel’s May operating performance worksheet and then answering the questions that follow. Statistics Last May This May Occupancy % 75% 85% Rooms Sold ADR $129.99 $116.99 Rooms Revenue RevPAR Controllable operating cost Gross operating profit GOPPAR
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1PA: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department....
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1) Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this year by 10 percent to help increase sales and improve his RevPAR. This action resulted in an upswing in occupancy, from 75 percent last year, to 85 percent this year; an increase of 13.3 percent.
Last year, Antonio’s controllable operating costs were $61.00 per room. This year, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antonio better understand the overall results of his rate reduction strategy by completing his hotel’s May operating performance worksheet and then answering the questions that follow.
| Statistics | Last May | This May |
| Occupancy % | 75% | 85% |
| Rooms Sold | ||
| ADR | $129.99 | $116.99 |
| Rooms Revenue | ||
| RevPAR | ||
| Controllable operating cost | ||
| Gross operating profit | ||
| GOPPAR |
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