QuestionJuly 21, 2025

The management of Folt Golt Hotel, which has 40 rooms on daily basis, has projected that the occupancy will be 50.00% with total revenue of 700,000 and total expenses of 80,000 for the next year.The income tax bracket is 40.00% Assume that Folt &Golt only has single and double rooms with a double occupancy of 65.00% The double rooms are sold at a premium of 25.00% over singles. Based on the information given, what are the individual ADRs for both single and double rooms for Folt & Golt (assume that there are 365 days in a year)? 41.25 ADR of a single room and 54.80 ADR of a double room 43.84 ADR of a single room and 54.80 ADR of a double room 40.70 ADR of a single room and 50.15 ADR of a double room 45.55 ADR of a single room and 60.38 ADR of a double room

The management of Folt Golt Hotel, which has 40 rooms on daily basis, has projected that the occupancy will be 50.00% with total revenue of 700,000 and total expenses of 80,000 for the next year.The income tax bracket is 40.00% Assume that Folt &Golt only has single and double rooms with a double occupancy of 65.00% The double rooms are sold at a premium of 25.00% over singles. Based on the information given, what are the individual ADRs for both single and double rooms for Folt & Golt (assume that there are 365 days in a year)? 41.25 ADR of a single room and 54.80 ADR of a double room 43.84 ADR of a single room and 54.80 ADR of a double room 40.70 ADR of a single room and 50.15 ADR of a double room 45.55 ADR of a single room and 60.38 ADR of a double room
The management of Folt Golt Hotel, which has 40 rooms on daily basis, has projected that the occupancy will be 50.00% with total revenue of 700,000 and total expenses of 80,000 for the next year.The income tax bracket is 40.00% Assume that Folt &Golt only has single and double rooms with a double occupancy of 65.00% The double rooms are sold at a premium of 25.00% over singles. Based on the information given, what are the individual ADRs for both single and double rooms for Folt & Golt (assume that there are 365 days in a year)? 41.25 ADR of a single room and 54.80 ADR of a double room 43.84 ADR of a single room and 54.80 ADR of a double room 40.70 ADR of a single room and 50.15 ADR of a double room 45.55 ADR of a single room and 60.38 ADR of a double room

Solution
4.3(284 votes)

Answer

None of the provided options match the calculated ADRs. Explanation 1. Calculate Total Room Nights Total room nights = 40 rooms * 365 days = 14,600 room nights. 2. Calculate Occupied Room Nights Occupied room nights = 50% of total room nights = 0.5 * 14,600 = 7,300 room nights. 3. Calculate Revenue per Room Night (ADR) ADR = Total revenue / Occupied room nights = \700,000 / 7,300 ≈ \95.89. 4. Determine Double Room Occupancy Double room occupancy = 65% of occupied room nights = 0.65 * 7,300 = 4,745 double room nights. 5. Calculate Single Room Occupancy Single room occupancy = Total occupied room nights - Double room occupancy = 7,300 - 4,745 = 2,555 single room nights. 6. Calculate ADR for Double Rooms Let x be the ADR for single rooms. Then, ADR for double rooms = 1.25x. Total revenue = (Single room nights * x) + (Double room nights * 1.25x). Substitute known values: \700,000 = (2,555 * x) + (4,745 * 1.25x). 7. Solve for x \700,000 = 2,555x + 5,931.25x = 8,486.25x. x = \700,000 / 8,486.25 ≈ \82.47. 8. Calculate ADR for Double Rooms ADR for double rooms = 1.25 * \82.47 ≈ \103.09.

Explanation

1. Calculate Total Room Nights<br /> Total room nights = 40 rooms * 365 days = 14,600 room nights.<br /><br />2. Calculate Occupied Room Nights<br /> Occupied room nights = 50% of total room nights = 0.5 * 14,600 = 7,300 room nights.<br /><br />3. Calculate Revenue per Room Night (ADR)<br /> ADR = Total revenue / Occupied room nights = \$700,000 / 7,300 ≈ \$95.89.<br /><br />4. Determine Double Room Occupancy<br /> Double room occupancy = 65% of occupied room nights = 0.65 * 7,300 = 4,745 double room nights.<br /><br />5. Calculate Single Room Occupancy<br /> Single room occupancy = Total occupied room nights - Double room occupancy = 7,300 - 4,745 = 2,555 single room nights.<br /><br />6. Calculate ADR for Double Rooms<br /> Let x be the ADR for single rooms. Then, ADR for double rooms = 1.25x.<br /> Total revenue = (Single room nights * x) + (Double room nights * 1.25x).<br /> Substitute known values: \$700,000 = (2,555 * x) + (4,745 * 1.25x).<br /><br />7. Solve for x<br /> \$700,000 = 2,555x + 5,931.25x = 8,486.25x.<br /> x = \$700,000 / 8,486.25 ≈ \$82.47.<br /><br />8. Calculate ADR for Double Rooms<br /> ADR for double rooms = 1.25 * \$82.47 ≈ \$103.09.
Click to rate:

Similar Questions