Question

Peter is a revenue manager of a 300-room hotel. Over this past weekend (including both Saturday and Friday evenings) he sold 450 of his guestrooms with an average daily rate (ADR) of $300.00. What as his hotel's RevPAR for thepast weekend?

Answer 1

$225

Explanation:

-RevPar is defined as the room revenue divided by the number of rooms available:

`RevPar=(Room \ Revenue)/(Rooms \ Available)`

-The average number of rooms sold per day in the two days is:

`mean =(450)/(2)\\\\=225\ rooms`

The PevPar can then be calculated as:

`RevPar=(Room \ Revenue)/(Rooms \ Available)\\\\=(ADR* mean occupancy)/(Rooms \ Available)\\\\=(300* 225)/(300)\\\\=225`

Hence, the PevPar is $225