Below is information about a potential group that wants to stay at your hotel and the forecasted transient displacement which would occur if the group was accepted. Using this information, complete and submit the Excel file which was provided. In addition, indicate whether you would accept the group or not in the comments section of the submission. (There are no formulas given.)

1. A group desires to book a meeting of 600 rooms per night for four nights. 2. The month they require the rooms is July, which is the peak summer season for the hotel. 3. The meeting planner for the convention group is offering a $150 room rate and is requiring the hotel to pay her a 10% commission on the gross room revenue. 4. The transient rate is forecast to be $180 over this period. 5. It is estimated that the room nights for the meeting guests will displace 2,200 forecasted transient room nights. 6. Variable costs per occupied room are $30, regardless of the guest (transient or group). 7. The food and beverage revenue generated through banquet services will displace revenues in the restaurants. It is estimated that the banquet food and beverage revenue will amount to $100 per group room night, while the displaced transient revenue will amount to $80 per transient room night. 8. The banquet food cost is 25%, while restaurant food cost is 33%. 9. The labor percentage in banquets is 24%, while in the restaurant it is 30%. 10. The property's audiovisual (AV) department will generate an additional $50,000 in revenue from the convention. The related costs are 50%. 11. The meeting planner wants to erect a tent on the tennis courts at a cost of $50,000, to be paid by the hotel. 12. Loss of tennis revenue for these days (including setup and teardown) will amount to approximately $3,000. There will be a corresponding savings in labor of $400 for the six days (entire, not per day). 13. Parking revenues will be reduced by an estimated $2,500 as most attendees will fly in rather than drive. 14. There will be no change in fixed costs or any other changes in variable cost. Given the facts above, complete the analysis on Excel file you were provided. Also, indicate whether you would accept or decline the group. the the Item Meeting Meeting Calculation of Rooms Revenue Using the information you were given Complete this form to calculate the impact of displacing the transient potential. Do NOT enter data into shaded cells Use the formulas given in column A and referenced in column B Rooms Occupied (A) Average Rate (B) C. Room Revenue (AXB) Calculation of F&B Revenue Rooms Occupied (A) Revenue Per Occupied Room (D) Gross Revenue (AXD) E Revenues: Room Revenue Food and Beverage Revenue Additional AVRevenue Gven Loss of Tennis Revenue (negative number) Note: Enter as a NEGATIVE number Given Loss of Parking Revenue (negative number) Note: Enter as a NEGATIVE number Given Total Gross Revenue $0 $0 Incremental Expenses: Rooms Variable Cost ($30 Per Room night (A) $0 Banquet Food Cost (25% xE) Restaurant Food Cost (33% x E) Banquet Labor Cost (24% xE) Restaurant Labor Cost (30% xE) Meeting Planner Commission (10% of Room Revenu A/V Cost (50%)(XAVRevenue) Note: Enter as a NEGATIVE number Savings in Tennis Labor (Given in Case - Negative Cost of Erecting Tent (Given in Case) $0 Total Incremental Costs $0 When you are done, save this form as "firstnamedisplace.xlsx" and submit using the assignment link. Net Differential Profit $0 Q-P $0 1. A group desires to book a meeting of 600 rooms per night for four nights. 2. The month they require the rooms is July, which is the peak summer season for the hotel. 3. The meeting planner for the convention group is offering a $150 room rate and is requiring the hotel to pay her a 10% commission on the gross room revenue. 4. The transient rate is forecast to be $180 over this period. 5. It is estimated that the room nights for the meeting guests will displace 2,200 forecasted transient room nights. 6. Variable costs per occupied room are $30, regardless of the guest (transient or group). 7. The food and beverage revenue generated through banquet services will displace revenues in the restaurants. It is estimated that the banquet food and beverage revenue will amount to $100 per group room night, while the displaced transient revenue will amount to $80 per transient room night. 8. The banquet food cost is 25%, while restaurant food cost is 33%. 9. The labor percentage in banquets is 24%, while in the restaurant it is 30%. 10. The property's audiovisual (AV) department will generate an additional $50,000 in revenue from the convention. The related costs are 50%. 11. The meeting planner wants to erect a tent on the tennis courts at a cost of $50,000, to be paid by the hotel. 12. Loss of tennis revenue for these days (including setup and teardown) will amount to approximately $3,000. There will be a corresponding savings in labor of $400 for the six days (entire, not per day). 13. Parking revenues will be reduced by an estimated $2,500 as most attendees will fly in rather than drive. 14. There will be no change in fixed costs or any other changes in variable cost. Given the facts above, complete the analysis on Excel file you were provided. Also, indicate whether you would accept or decline the group. the the Item Meeting Meeting Calculation of Rooms Revenue Using the information you were given Complete this form to calculate the impact of displacing the transient potential. Do NOT enter data into shaded cells Use the formulas given in column A and referenced in column B Rooms Occupied (A) Average Rate (B) C. Room Revenue (AXB) Calculation of F&B Revenue Rooms Occupied (A) Revenue Per Occupied Room (D) Gross Revenue (AXD) E Revenues: Room Revenue Food and Beverage Revenue Additional AVRevenue Gven Loss of Tennis Revenue (negative number) Note: Enter as a NEGATIVE number Given Loss of Parking Revenue (negative number) Note: Enter as a NEGATIVE number Given Total Gross Revenue $0 $0 Incremental Expenses: Rooms Variable Cost ($30 Per Room night (A) $0 Banquet Food Cost (25% xE) Restaurant Food Cost (33% x E) Banquet Labor Cost (24% xE) Restaurant Labor Cost (30% xE) Meeting Planner Commission (10% of Room Revenu A/V Cost (50%)(XAVRevenue) Note: Enter as a NEGATIVE number Savings in Tennis Labor (Given in Case - Negative Cost of Erecting Tent (Given in Case) $0 Total Incremental Costs $0 When you are done, save this form as "firstnamedisplace.xlsx" and submit using the assignment link. Net Differential Profit $0 Q-P $0