Use the following information to answer questions 18 20 A ho

Use the following information to answer questions 18 -20.

A hotel had a supply of 3,000 rooms in January and sold 2,500 rooms. The total revenue was $270,000 in January. In December, the supply was the same, total revenue was $300,000 and the demand was 2,900 rooms. The competition showed an ADR of $110, an occupancy percent of 90 and a RevPAR of $ 99 in January.

18. Calculate the percentage change for the hotel’s RevPar in January:

19. Calculate the index for the hotel’s RevPAR for January.

Solution

Revenue per available room (RevPAR) is a performance metric used in the hotel industry and is calculated by multiplying a hotel\'s average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel\'s total room revenue by the total number of available rooms in the period being measured

index for the hotel’s RevPAR for January = Total guest room revenue/ Number of total available rooms

index for the hotel’s RevPAR for January = $270000/3000 = $90

revpar in december = $300000/3000 = $100

the percentage change for the hotel’s RevPar in January = ((90 - 100)*100)/90 = -11.11% or simply 11.11%