Question

Ginger's hotel ran an occupancy rate of 85% and her competitive set had 150,00room nights included within it there were available for sale during that month. That month the total sold was 115,000 rooms. What was the approximate occupancy rate index last month?

Answer 1

The approximate occupancy rate index last month was 112%.

Step-by-step explanation:

According to the data, we have the following:

Ginger’s occupancy = 85%

Its competitive set has 150,000 rooms. The total sold was 115,000 rooms in the month.

So, to calculate the the approximate occupancy rate index last month, we calculate first occupancy rate of the competitive set = 115,000/150,000 = 0.7667 = 76.67%

Hence competitive set occupancy = 76%

Therefore, occupancy rate INDEX = ginger’s occupancy/competitive set occupancy

= 85%/76 %

= 1.1184 =112%

The approximate occupancy rate index last month was 112%.