Teshia is the Rev Manager at the 330 room Springwood Suite Hotel, which is a select...

 

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Teshia is the Rev Manager at the 330 room Springwood Suite Hotel, which is a select service property with only complimentary breakfast. Teshia has 90 rooms on the books for this Friday and she forecasts another 190 rooms can be sold that day, both of these demand are forecasted at an ADR of $180. This morning Teshia got information about an incoming convention on the Friday. The group room buyer for the convention has requested the group rate of $90 for 175 rooms. Director of Sales of the hotel believes the group will pick up 95% of its required rooms with 5% of wash factor. The variable cost per room is $58, the undistributed cost per available room is $21 for Springwood hotel. Questions. 1. Should Teshia take the group order or not? Why? (50 points) 2. What would be the hotel's accordingly? (50 points) ADR/Occupancy/Revenue/GOP of the Friday based on forecast Teshia is the Rev Manager at the 330 room Springwood Suite Hotel, which is a select service property with only complimentary breakfast. Teshia has 90 rooms on the books for this Friday and she forecasts another 190 rooms can be sold that day, both of these demand are forecasted at an ADR of $180. This morning Teshia got information about an incoming convention on the Friday. The group room buyer for the convention has requested the group rate of $90 for 175 rooms. Director of Sales of the hotel believes the group will pick up 95% of its required rooms with 5% of wash factor. The variable cost per room is $58, the undistributed cost per available room is $21 for Springwood hotel. Questions. 1. Should Teshia take the group order or not? Why? (50 points) 2. What would be the hotel's accordingly? (50 points) ADR/Occupancy/Revenue/GOP of the Friday based on forecast

Answer rating: 100% (QA)

To determine whether Teshia should take the group order or not we need to compare the financial impact of accepting the group rate versus selling the ... View the full answer