Question

The 100-room Fantastic Florida motor lodge accepts only cash for its guests. On Saturday evening the hotel had 90 of its rooms occupied and total cash receipts for the evening totaled $9,000.00. What was the motor lodge's average daily rate (ADR) for that particular evening?

Answer 1

The ADR is $100

Step-by-step explanation:

The average daily rate (ADR) for a hotel is calculated by taking the average revenue earned from rooms and dividing it by the number of rooms sold.

In the scenario presented above, the lodge has one hundred rooms, but sold only ninety rooms, making $9,000. Therefore, we calculate the ADR as follows:

=> $9,000/90

=> $100.

Therefore the average daily rate is $100, meaning that, on average $100 was made per room that was sold.