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 Ginger's hotel?

Answer 1

Answer:

Occupancy Index=111

Step-by-step explanation:

Occupancy Index is defined ad the measure of a hotel's occupancy rate divided by the occupancy rate of the competitive hotel multiplied by 100:

$INDEX=\frac{Property \ OCC}{Competitive \ OCC}\times 100$

-The occupancy rate of the competitive set is calculated as:

$Competitive \ Occupancy\ Rate=\frac{Rooms \ Sold}{Rooms \ Available}\\\\=\frac{115000}{150000}\\\\=0.7667\\\\=76.67\%$

The occupancy index is then calculated as follows:

$INDEX=\frac{Porperty \ OCC}{Competitive \ OCC}\times 100\\\\\=\frac{0.85}{0.7667}\times 100\\\\=110.8647\approx 111$

Hence, the occupancy index is approximately 111