Antonio is the RM at the 180-room Hawthorne Suites. Disappointed in his occupancy rate last year, he decided to reduce his room rates this year by 10 percent to help increase sales and improve his RevPAR. This action resulted in an upswing in occupancy, from 75 percent last year, to 85 percent this year; an increase of 13.3 percent.

Last year, Antonio's controllable operating costs were $61.00 per room. This year, they rose to $62.00 per room, an increase of only 1.6 percent. Help Antonio better understand the overall results of his rate reduction strategy by completing his hotel's May operating performance worksheet and then answering the questions that follow.

Statistics	Last May	This May
Occupancy %	75%	85%
Rooms Sold
ADR	$129.99	$116.99
Rooms Revenue
RevPAR
Controllable operating cost
Gross operating profit
GOPPAR

A. What was Antonio's RevPAR "Last May?"

B. What was Antonio's RevPAR "This May?"

C. What was Antonio's GOPPAR "Last May?

D. What was Antonio's GOPPAR change from last May to this May: 

In Dollars?

In %?

E. Compare Antonio's GOPPAR performance this year versus last year. How effective do

you believe Antonio was in devising and implementing his revenue optimization

strategy?

 

2) Paige Vincent is the RM at the City Center Novotel. For over 12 months, she has been working hard to improve the performance of her hotel. Paige just received the following performance data. Help her understand the revenue optimization trends for her property by completing the chart. Then, you will be asked to evaluate her efforts. 

 

A. What was Paige's occupancy index this month?

B. What was Paige's ADR index for the last three months?

C. What was Paige's RevPAR index this month?

D. What was Paige's RevPAR for the last 12 months?

E. Compare Paige's property performance for the past 12 months to that of her competitive set. How effective do you believe Paige has been in devising and

implementing her revenue optimization strategy?

City Center Novotel Performance:
Occupancy %	Novotel	Comp Set	Index
This month	57.2	58.1
Last 3 months	55.1	57.7
Last 12 months	51.3	55.6
ADR
This month	$266.57	$270.15
Last 3 months	$244.91	$269.69
Last 12 months	$231.45	$268.95
RevPAR
This month
Last 3 months
Last 12 months

Answer rating: 100% (QA)

A Antonios RevPAR Last May can be calculated by multiplying the occupancy rate of 75 by the ADR of 1... View the full answer