Case Study 3: Market Performance Analysis Consider the market performance of Hotel A-E in the following comp.
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Case Study 3: Market Performance Analysis
Consider the market performance of Hotel A-E in the following comp. set.
Hotel | Rooms | Capacity Market Share | April Occ.% | April ADR | Rooms Sold | Rooms Rev. | Room Night Share | Revenue Share | REVPAR Penetration | REVPAR |
A | 150 | 7.3% | 60% | 160.00 | 2,700 | 432,000 | ||||
B | 225 | 11.0% | 68% | 140.00 | 4,590 | 642,600 | ||||
C | 400 | 19.5% | 65% | 115.00 | 7,800 | 897,000 | ||||
D | 525 | 25.6% | 80% | 96.00 | 12,600 | 1,209,600 | ||||
E | 750 | 36.6% | 83% | 90.00 | 18,675 | 1,680,750 | ||||
Total | 2,050 | 100% | 46,365 | 4,861,950 |
Discussion Questions
- Calculate fair shares for occupancy and rooms revenue (Show your calculations and then fill in the above graph). Which hotels within the comp set did not get their fair share of room nights? Compare the findings to revenue share results.
- Complete a RevPAR penetration analysis based on data provided in the table (Show your calculations). Which hotel is the top RevPAR performer in the comp set?
- Which hotel would you recommend as the best investment, assuming that investors have unrestricted access to financing? Explain why (150 words).
Related Book For
Management Fundamentals Concepts Applications & Skill Development
ISBN: 978-1483352268
6th edition
Authors: Robert N. Lussier
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