Question

Last month, Ginger's hotel ran an occupancy rate of 85%. Her competitive set had 150,000 room nights included within it that were available for sale during that month. During that month, the competitive set sold a total of 115,000 rooms. What was the approximate occupancy rate INDEX last month for Ginegr's hotel?

Answer 1

Approximate occupancy rate INDEX last month for Ginegr's hotel is 112.

Explanation:

The occupancy of Ginger’s hotel is 85% whereas the competitive set has 150,000 rooms. Among them, only 115,000 rooms are sold.

Hence, the occupancy rate of the competitive set will be as follows

= 115000/150000 = 0.7667 = Or in percentage, it will be 76.67%.

We know that occupancy is always rounded to the lower whole number and therefore, the actual occupancy would be 76%. From here, we can calculate the occupancy rate INDEX as follows

The occupancy rate INDEX = Ginger’s hotel occupancy/competitive set occupancy

= 85/76

= 1.1184

Finally, in percentage and rounding to the nearest whole numberm the occupancy would be 112%.