Final answer:
The RevPAR of the motel with 100 rooms, selling an average of 80 rooms at an average daily rate of $80, is $64. This is calculated by multiplying the average daily rate by the average occupancy rate.
Step-by-step explanation:
The student is asking about how to calculate the Revenue per Available Room (RevPAR), which is a common performance metric in the hospitality industry. To find the RevPAR, you need to multiply the average daily rate (ADR) by the occupancy rate, or divide the total room revenue by the number of available rooms. In this case, the motel's average daily rate is $80, and the average occupancy rate is 80%, since 80 out of 100 rooms are sold per day.
To calculate the RevPAR: RevPAR = ADR × Occupancy Rate. Thus, the RevPAR for this motel would be: RevPAR = $80 × 0.80, which equals $64 per day.
Comparing this with the ballpark figures from various Hyatt Regency locations, it's evident that prices can vary significantly based on location. For example, the Hyatt Regency in New York City has rooms priced at $625, which is substantially higher than the example given for the motel. This comparison serves to highlight the role that location plays in setting room rates and the potential impact on RevPAR.