Makayla Jennings is the general manager at the Hampworth Inn. Le'Veon is the property's front office manager (FOM) and Latisha is the hotel's Director of Sales and Marketing (DOSM). All three serve on the hotel's RM committee. The hotel has 175 rooms available for sale. Next month, the hotel will serve as the headquarter hotel for the Retired Firefighters Association. The Association originally blocked 90 rooms per night for Thursday, Friday, and Saturday nights at a rate of $99.00 per night. All the rooms in their block have been picked up. The current rooms availability forecast for the three days of the meeting is as follows:

"The group has requested that Latisha add 20 rooms each night to their block at the originally contracted rate of $99.00. They state that they will use all of the additional rooms if they are made available, but if not they will move their remaining 20 attendees down the street to the Comfort Inn. Latisha is in favor of increasing the block and keeping the group together. Le'Veon is opposed. He is convinced that he can sell additional rooms at an ADR of $149.00 as indicated in the following spreadsheet he has prepared:"

"Under his plan, he states, “the hotel can maximize its ADR.” Based on Le'Veon's estimate of future sales to be made at rack rate, Makayla knows the hotel would sell any remaining rooms not held for the firefighters at the hotel’s full rack rate of $149 and thus maximize its occupancy percentage if she takes Latisha's advice. Help Makayla analyze the data she needs to answer the questions that follow by filling in the chart:"

Current Rooms Sales
	ADR ($)	Thursday	Friday	Saturday
Total rooms available for sale		175	175	175
Firefighters’ rooms reserved	99.00	90	90	90
All other rooms reserved	149.00	55	35	45
Total rooms reserved	?	145	125	135
Rooms Available	?	30	50	40
Additional group rooms requested	?	20	20	20
Le'Veon’s Forecast
	ADR ($)	Thursday	Friday	Saturday
Additional rooms to be sold at	149.00	20	40	30
	Under Latisha’s Plan	Under Le'Veon’s Plan
Rooms Sold	?	?
Group Revenue	?	?
Transient Revenue	?	?
Total Revenue	?	?
Occupancy %	?	?
ADR	?	?
RevPAR

a. What would the hotel’s ADR be under Le'Veon’s plan?

b. What would the hotel’s RevPAR be under Le'Veon’s plan?

c. What would the hotel’s ADR be under Latisha’s plan?

d. What would the hotel’s RevPAR be under Latisha’s plan?

e. Whose plan would you advise Makayla to support? Explain your rationale. Provide at least 2 reasons for the choice of plans.

Answer rating: 100% (QA)

Under Latishas Plan Under LeVeons Plan Rooms Sold Thursday 175 Friday 175 Saturday 175 Calculations below Table Thursday 165 Friday 165 Saturday 165 C... View the full answer