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 |
2) Paige Vincent is the RM at the City Center Novotel. For over 12 months, she has been working hard to improve the performance of her hotel. Paige just received the following performance data. Help her understand the revenue optimization trends for her property by completing the chart. Then, you will be asked to evaluate her efforts.
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City Center Novotel Performance: |
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Occupancy % |
Novotel |
Comp Set |
Index |
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This month |
57.2 |
58.1 |
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Last 3 months |
55.1 |
57.7 |
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Last 12 months |
51.3 |
55.6 |
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ADR |
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This month |
$266.57 |
$270.15 |
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Last 3 months |
$244.91 |
$269.69 |
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Last 12 months |
$231.45 |
$268.95 |
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RevPAR |
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This month |
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Last 3 months |
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Last 12 months |
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