If a 300-room hotel achieves 70 percent occupancy for April at an ADR of CHF 153 per room, what will the month room revenue be equal to ?

Question

BlackTom AI · Accepted Answer

Monthly room revenue = number of rooms × days in the month × occupancy rate × ADR.

Relevant concepts:
- ADR (Average Daily Rate) is the average revenue per occupied room for one night.
- Occupancy rate (70% = 0.70) gives the fraction of rooms occupied each night.
- April has 30 days, so available room nights = rooms × 30.

Step-by-step reasoning and calculations:
1. Available room nights in April = 300 rooms × 30 days = 9,000 room nights.
2. Occupied room nights = available room nights × occupancy rate = 9,000 × 0.70 = 6,300 occupied room nights.
3. Monthly room revenue = occupied room nights × ADR = 6,300 × CHF 153.

Calculate 6,300 × 153:
- 153 × 6,300 = 153 × 63 × 100
- 153 × 63 = 153 × (60 + 3) = 153 × 60 + 153 × 3 = 9,180 + 459 = 9,639
- Multiply by 100: 9,639 × 100 = 963,900

Therefore monthly room revenue = CHF 963,900.

Why the correct answer is correct:
The computation uses the standard formula (rooms × days × occupancy × ADR) and the correct number of days in April (30). Multiplying out occupied room nights (6,300) by the per-room ADR gives CHF 963,900, which exactly matches option c.

Why the other options are incorrect:
- a. 3'213 is far too small; it equals 153 × 21 and doesn't correspond to the required monthly calculation.
- b. 32'130 equals one-night revenue at 70% occupancy (210 occupied rooms × CHF 153 = CHF 32,130), not the full month.
- d. 1'377'000 equals full occupancy revenue for April (9,000 available nights × CHF 153), i.e., 100% occupancy, not 70%.

Conclusion: The correct monthly room revenue is CHF 963'900, matching option c.

If a 300-room hotel achieves 70 percent occupancy for April at an ADR of CHF 153 per room, what will the month room revenue be equal to ?Single choice

Similar Questions

How much is MCT3 worth?

A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the company's after-tax income?

Given the tax rates as shown, what is the average tax rate for a firm with taxable income of $289,740?

2. By 2040, because of electric cars, electricity consumption will increase by Answer Question 2[input] %.

A company is valued at $200 billion. If Debt funding constitutes 55% of the total, and Preferred Stocks make up 10%, how much funding is from Common Stocks?

28. Approximately Answer Question 28[input] % of screen time is spent on social media.

In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms during the month. What was the occupancy percentage for the month?a. 92.5 percentb. 95.6 percentc. 108 percentd. The answer cannot be determined from the information provided.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler