Question

Calculate the yield statistic for a hotel with an actual room revenue of $525,800 and a potential rooms revenue of $600,500.

Answer 1

The yield statistic is: 87.6%

Explanation:

Given

`ARR = \$525800`

`PRR = \$600500`

Required

Determine the yield statistic

This is calculated as:

`Yield = (ARR)/(PRR)`

`Yield = (\$525800)/(\$600500)`

`Yield = (525800)/(600500)`

`Yield = 0.87560366361`

Approximate

`Yield \approx 0.876`

Express as percentage

`Yield \approx 87.6\%`