Amanpulo Resorts, owned by Seven Seas Resorts & Leisure, Inc., ended the year 2000 with an occupancy of 51.6% up from last year’s 46.7%. This improvement in occupancy is quite notable considering that the country had experienced peace and order problems as brought about by the wave of kidnappings in the South as well as the political uncertainty due to the impeachment trial of President Joseph Estrada. Average room rate likewise improved at US$574, reflecting a 5% increase from 1999’s $549. Total hotel revenues amounted to ₱283.0 million as against last year’s ₱223.4 million. Gross operating profit (GOP) amounted to ₱136 million representing 48% of total revenues, whereas last year’s GOP was at ₱91 million. Net income reached ₱19.9 million compared to last year’s net loss of ₱11.7 million. As in previous years, Amanpulo Resort continued to win numerous awards in the hotel and esort categories. Examples: • No. 1 Best Hotel Worldwide; No. 1 Best Small Hotel under 60 rooms; No. 1 Best Resort in Asia Pacific; No. 5 Best Cuisine Worldwide; and No. 8 Best Hotel Service Worldwide (2000 Gallivanter’s Guide, U.K.) • No. 1 Best Luxury Resort (2000 Conde Nast Traveller, U.K.) • No. 1 Best Luxury Resort (2000 Robb Report, 12th Annual Best of the Best) The Resort continues to put the Philippines in the international map and should help government efforts to bring in more tourists to the country. Source: A. Soriano Corporation Questions: 1. Did Amanpulo Resort experience a business turn-around? Explain. 2. Why is the level of occupancy a popular measure of operating performance for hotels and resorts? 3. Why is Amanpulo a high-end resort? 4. Is the operation of Amanpulo sensitive to political and peace and order problems? Explain.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Amanpulo Resorts, owned by Seven Seas Resorts & Leisure, Inc., ended the year 2000 with an occupancy of 51.6% up from last year’s 46.7%. This improvement in occupancy is quite notable considering that the country had experienced peace and order problems as brought about by the wave of kidnappings in the South as well as the political uncertainty due to the impeachment trial of President Joseph Estrada. Average room rate likewise improved at US$574, reflecting a 5% increase from 1999’s $549. Total hotel revenues amounted to ₱283.0 million as against last year’s ₱223.4 million. Gross operating profit (GOP) amounted to ₱136 million representing 48% of total revenues, whereas last year’s GOP was at ₱91 million. Net income reached ₱19.9 million compared to last year’s net loss of ₱11.7 million. As in previous years, Amanpulo Resort continued to win numerous awards in the hotel and esort categories. Examples: • No. 1 Best Hotel Worldwide; No. 1 Best Small Hotel under 60 rooms; No. 1 Best Resort in Asia Pacific; No. 5 Best Cuisine Worldwide; and No. 8 Best Hotel Service Worldwide (2000 Gallivanter’s Guide, U.K.) • No. 1 Best Luxury Resort (2000 Conde Nast Traveller, U.K.) • No. 1 Best Luxury Resort (2000 Robb Report, 12th Annual Best of the Best) The Resort continues to put the Philippines in the international map and should help government efforts to bring in more tourists to the country. Source: A. Soriano Corporation Questions: 1. Did Amanpulo Resort experience a business turn-around? Explain. 2. Why is the level of occupancy a popular measure of operating performance for hotels and resorts? 3. Why is Amanpulo a high-end resort? 4. Is the operation of Amanpulo sensitive to political and peace and order problems? Explain.

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