Question

The operation team of H hotel, which has 25 rooms on daily basis, has projected that the occupancy will be 60.00% with total revenue of $620,000 and total expenses of $50,000 for the next year. The income tax bracket is 40.00%. Assume that there are only single and double rooms for H with a double occupancy of 70.00% and the double rooms are sold at a percentage markup of 20.00% over singles. Based on the information given, what are the individual ADRs for both single and double rooms for H hotel for the next year (assume that there are 365 days in a year)?

$40.11 for singles and $49.33 for doubles

$47.62 for singles and $55.68 for doubles

$54.48 for singles and $65.38 for doubles

$56.90 for singles and $69.23 for doubles

Answer 1