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Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of...

Assume that Mantine Hotel has 200 rooms with 80% occupancy on daily basis. The ADR of this hotel is $70.00 and it operates every day in a certain year. Also, this hotel has $2 million annual F&B revenue. On daily basis, the total number of guests stayed at Mantine is 80. Based on the information given, calculate the revenue per available customer (assume that total number of guests stay constant through the year and there are 365 days in a year).

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Answer #1

Step-1 First Calculate Annual Hotel Room Occupancy

H.R.C. = Room x Occupancy Rate x 365 = 200 Rooms x 80% x 365 = 58,400 Rooms

Step-2 Find out Annual Revenue from Hotel Room = H.R.C. x ADR = 58,400 x $70 = $4,088,000

Step-3 Annual Revenue from F&B = $2,000,000

Step-4 Calculate Total Revenue = Revenue from Hotel Room + Revenue from F&B = $4,088,000 + $2,000,000 =$6,088,000

Step-5 Calculate Annual guest stay = Daily guests stayed x 365 = 80 x 365 = 29,200

Step-6 Calculate Revenue per customer = Total Revenue / Annual Guest Stay = $6,088,000 / 29,200 = $208.49

Hotel have revenue per customer is $208.49

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