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 rate INDEX is defined as the ratio between the percentage occupancy of your property to the percentage occupancy of the competitive set times 100%

-Given that your property's occupancy rate is 85%. The occupancy rate of the competitive set is:

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

-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 approximate occupancy index for the hotel is 111