All Seasons invested $150 million in acquiring the land and $500 million in building and furnishing the 10 hotels to a guest-ready stage. Each hotel has 150 rooms. Each room has a base rate of $200 per night but the hotel gives an average discount of $30 per night. Each hotel costs $1 million in materials to run, and is staffed by 58 employees, each paid an average compensation of $50,000 a year (365 days).

The chain's average occupancy rate is determined by staffing level, the base rate and discount: occupancy rate = 0.01 x numberOfEmployeesPerHotel ( 0.0015 x base Price ) + ( 0.01 x discount)

What is the ROIC? How about 50 employee per hotel?

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Answer rating: 100% (QA)

To calculate the Return on Invested Capital ROIC we need to determine the net operating profit after ... View the full answer