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

1. 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.
2. 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?
3. Which hotel would you recommend as the best investment, assuming that investors have unrestricted access to financing? Explain why (150 words).