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

The approximate occupancy rate INDEX last month for Ginger's hotel is 112

Step-by-step explanation:

Ginger’s occupancy = 85%

Its competitive set has 150,000 rooms. But only 115,000 sold

So occupancy rate of the competitive set = 115000 by 150000 = 0.7667 = 76.67%

The occupancy should always be rounded to the lower whole number (so as to not change the occupancy rooms)

Hence competitive set occupancy = 76%

So, occupancy rate INDEX = ginger’s occupancy by competitive set occupancy

= 85 by 76

= 1.1184

=112% (rounded to nearest whole number)

Hence, Answer is: 112