Question

The average room rate for a standard hotel room at La Romana Inn is $120 per night. Their occupancy rate is 80%. What is the hotel's RevPAR? A. $96 B. $100 C. $120 D. $150

Answer 1

Answer: RevPAR (Revenue Per Available Room) is calculated by multiplying the average daily rate (ADR) by the occupancy rate. In this case:

Average Daily Rate (ADR) = $120 per night

Occupancy Rate = 80%

RevPAR = ADR x Occupancy Rate

RevPAR = $120 x 0.80

RevPAR = $96

So, the hotel's RevPAR is A) $96.