Question

Posa Hôtels Inc, has a sixth night free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to ear a free stay, on average the number of free nights redeemed is 70% of the maximum possible number fo free nights available one obtins by dividing the total number of paid nights the hotel has had by 5. Rooms at Posa hotesl cost $300 per night.

Answer 1

Particulars	Days
No of days in a year	365
Total number of free nights available in a year (365/6)	60
No. of free nights redeemed (60 x 70%)	42
Thus, number of paid nights (42 x 5)	210

  

Particulars	Amount ($)
Room cost per night ($)	300
Thus, total revenue from room rent (210 x 300)	63,000
Amount of revenue lost due to free night (42 x 300)	12,600

Hence, total amount of revenue from room rent of Posa Hotels Inc. is $63,000.