The Sunrise Hotel new location will have 250 rooms and cost $30,000,000. Required: Compute the average...

 

  

Transcribed Image Text:

The Sunrise Hotel new location will have 250 rooms and cost $30,000,000. Required: Compute the average daily room rate using the $1 per $1,000 Approach Amount Average daily room rate Case Two (8 Points) The Sunrise Hotel has a new location with 250 rooms available daily. The rooms are either standard or deluxe. Tree Top Hotel charges $50 more for the deluxe rooms compared to the standard room Additional Information: Number of rooms Deluxe extra price compared to standard Total annual occupancy rate Standard rooms daily occupancy rate Total room revenues Restaurant revenues Projected expenses Tax rate $ S.S.S $ 250 30 60% 75% 35,00,000 15,00,000 4,50,000 32% Computation Required: Using the Bottom-Up Approach, compute the following a) The total projected number of rooms sold, assuming 365 days per year Amount Projected number of rooms sold b) Net income Revenues Costs Net operating income Taxes Net income c) After-tax average daily room rate After-tax average daily room rate d) Standard rooms and deluxe rooms sold Standard rooms sold Deluxe rooms sold Amount Amount Amount Computation Computation Computation Computation The Sunrise Hotel new location will have 250 rooms and cost $30,000,000. Required: Compute the average daily room rate using the $1 per $1,000 Approach Amount Average daily room rate Case Two (8 Points) The Sunrise Hotel has a new location with 250 rooms available daily. The rooms are either standard or deluxe. Tree Top Hotel charges $50 more for the deluxe rooms compared to the standard room Additional Information: Number of rooms Deluxe extra price compared to standard Total annual occupancy rate Standard rooms daily occupancy rate Total room revenues Restaurant revenues Projected expenses Tax rate $ S.S.S $ 250 30 60% 75% 35,00,000 15,00,000 4,50,000 32% Computation Required: Using the Bottom-Up Approach, compute the following a) The total projected number of rooms sold, assuming 365 days per year Amount Projected number of rooms sold b) Net income Revenues Costs Net operating income Taxes Net income c) After-tax average daily room rate After-tax average daily room rate d) Standard rooms and deluxe rooms sold Standard rooms sold Deluxe rooms sold Amount Amount Amount Computation Computation Computation Computation

Answer rating: 100% (QA)

QUESTION 1 Answer The average daily room rate ADRR using the 1 per 1000 approach can be computed using the following formula ADRR Cost365 Number of Ro... View the full answer