Question: Case Study - Market Performance Analysis Consider the market performance of Hotels A-E in the following comp set. Hotel Rooms Capacity April Occ. % April

Case Study - Market Performance Analysis Consider the market performance of Hotels A-E in the following comp set.

Hotel Rooms Capacity April Occ. % April ADR Rooms Sold Rooms Rev.
A 150 7% 60% 160 2,700 432,000
B 225 11% 68% 140 4,590 642,600
C 400 20% 65% 115 7,800 897,000
D 525 26% 80% 96 12,600 1,209,600
E 750 37% 83% 90 18,675 1,680,750
Total 2050 100% 46,365 4,861,950

Questions (show calculations)

1. Calculate fair shares for occupancy and rooms revenue.

a. Which hotels within the comp set did not get their fair share room nights?

b. Compare the findings to revenue share results.

2. Complete a RevPAR penetration analysis based on the data provided in the table.

a. Which Hotel is the top RevPAR performer in the comp set?

3. Which hotel would you recommend (providing data to justify your rationale) as the best investment, assuming that investors have unrestricted access to financing?

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