Question

1. Calculate Weighted Average Occupancy and ADR based on the following information.

(Round to the nearest 1% and $1)

Hotel	# of Rooms	Occupancy in June	ADR in June
A Hotel	200	90%	$159
B Hotel	205	86%	148
C Hotel	210	79%	136
D Hotel	300	78%	121
E Hotel	335	70%	119
Total	1,250	?	?

What is the weighted average occupancy and weighted average daily rate? ______, _______

Answer 1

Calculation of Weighted average Occupancy rate:

Probability (1)	occupancy (2)	Weighted average Occupancy (3) (1*2)
200/1250=0.16	90%	14.4%
205/1250=0.164	86%	14.104%
210/1250=0.168	79%	13.272%
300/1250=0.24	78%	18.72%
335/1250=0.268	70%	18.76%
	Weighted average occupancy rate	79.256%

Weighted average occupancy rate = 79% (rounded)

Calculation of Weighted average Daily rate:

Probability (1)	ADR (2)	Weighted average ADR (3) (1*2)
0.16	159	25.44
0.164	148	24.272
0.168	136	22.848
0.24	121	29.04
0.268	119	31.892
	Weighted average ADR	133.492

Weighted average ADR = 133 (rounded)