Question

The Western Heirloom Hotel has and ADR of $125 and a REVPAR of $83.75. Based on this information, we can calculate that the occupancy rate of this hotel will be:

Answer 1

The occupancy rate of the Western Heirloom Hotel is calculated using the provided ADR and REVPAR values, resulting in an occupancy rate of 67%.

Step-by-step explanation:

The student is interested in calculating the occupancy rate of the Western Heirloom Hotel given an Average Daily Rate (ADR) of $125 and a Revenue Per Available Room (REVPAR) of $83.75. To find the occupancy rate, we use the formula: Occupancy Rate = REVPAR / ADR.

Using the provided numbers, the occupancy rate calculation is as follows:

• Occupancy Rate = $83.75 / $125.00
• Occupancy Rate = 0.67 or 67%

Therefore, the occupancy rate for the Western Heirloom Hotel is 67%.