Question

Last month, Ginger's hotel ran an occupancy rate of 85%. Her competitive set had 150,000 room nights included within it that were available for sale during that month. During that month, the competitive set sold a total of 115,000 rooms. What was the approximate occupancy rate INDEX last month for Ginger's hotel? Group of answer choices

Answer 1

Answer:

111

Step-by-step explanation:

-The occupancy rate index is calculated using the following formula:

$Index=\frac{Hotel \ OCC}{Competitive \ OCC}\times 100$

-The Hotel OCC is the property's occupancy rate given as 85%

-The Competitive OCC, is the competitive set's occupancy rate calculated as;

$Occupancy \ Rate=\frac{Room \ Sold}{Rooms \ Available}\\\\\\=\frac{115000}{150000}\\\\=76.67\%$

-We then substitute to solve for the occupancy rate index:

$Index=\frac{Hotel \ OCC}{Competitive \ OCC}\times 100\\\\=\frac{0.85}{0.7767}\times 100\\\\=110.86\\\approx 111$

Hence, the occupancy rate index is 111