# The Elbow Bend Hotel is located in Calgarys East Village and has 100 Rooms total. The breakdown

## Question:

The Elbow Bend Hotel is located in Calgary’s East Village and has 100 Rooms total. The breakdown of room types is as follows:

40 Deluxe Rooms, 50 Executive Rooms and 10 Suites.

The Suites are always 100% sold out every month. The other two room types split equally to account for the remainder of rooms sold. Half of the rooms sold every day have double occupancy.

The hotel has one casual fine- dining restaurant that is open for dinner daily from 6:00pm-9:00pm. It has 80 seats and is open year-round to support the hotel guests. The best-selling entrée in the restaurant is the Chef Signature Chicken. It accounts for 30% of all food menu items sold, while the best-selling beverage is the East Village Caesar which accounts for 10% of all beverage menu items sold.

The restaurant can turn twice in one service period. This outlet requires one server for every 30 guests and two culinary staff for every 20 guests. All server shifts are 6 hours long. All culinary shifts are 7 hours long.

Include the following:

1. Use the excel workbook to create a Revenue Budget. Include a monthly, quarterly and one-year budget.

**Calculate the following:**

2. Calculate the number of rooms sold per night, in each room category, by quarter.

3. Calculate RevPAR by quarter.

4. a) Research an area competitor of the Elbow Bend Hotel in East Village Calgary. Provide the average daily room rate for your chosen competitor for the month of March 2023 based on your calculations from their live company website.

b)Calculate the following for your competitor. If they had your occupancy percentage for the month of March 2023 (Elbow Bend Hotel), how much revenue would they make for the month of March 2023?

c). Based on your above calculations, create one recommendation for the Elbow Bend Hotel that would help to increase occupancy or the average daily rate for March 2024 (next year).

5. Calculate how many guests are served in the on-site restaurant per day, each month.

6. Calculate the number of guests that could be served by the restaurant in one day.

7. Calculate how many more guests the restaurant could have serviced each day per month.

8. Calculate the Average Sales Revenue per server, per quarter.

9. Calculate the percentage of your total operating revenue that accounts for Rooms, Food, and Beverage.

10. Calculate the average food and beverage check.

11. Calculate how many guests order the Chef Signature Chicken each quarter.

12. Calculate how many guests order the East Village Caesar each quarter.

13. If all restaurant guests are guests of the hotel, what percentage of hotel guests were captured by the hotel restaurant? (Calculate the percentage of hotel guests that use the restaurant).

14. Based on your above calculations, create one recommendation for the Elbow Bend Hotel that would help to increase restaurant traffic or average guest check.

**Related Book For**

## Auditing The Art And Science Of Assurance Engagements

ISBN: 9780136692089

15th Canadian Edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones