3. Occupancy
âą Occupancy is a measure of supply and
demand, it gauges the hotel industryâs
economic health.
âą Robust demand encourages
construction, while falling demand
seals the fate of old hotels.
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4. Occupancy
âą In computing for the occupancy rate (percentage of occupancy), we look at two things:
âą The number of rooms available
âą The number of rooms occupied (number of rooms sold)
âą Hoteliers count this figure every night.
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7. Sales per Occupied Room
âą While Occupancy measures quantity,
Sales per occupied room (Average Daily
Rate ADR) measures quality.
âą The health of the industry is reflected in
both occupancy and price.
âą Price, ADR, increases as occupancy
increases.
âą The more rooms sold â the greater the
demand â the higher the room rate.
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10. Revenue per Available Room (RevPar)
âą RevPar or average rate per available
room measures managementâs ability to
keep rates high even as occupancy
declines.
âą Normally, guests elect lower rates when
an empty house allows it. Superior
managers strive to keep rates high even
as occupancy dips within the cycle.
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12. Revenue per Available Room (RevPar)
âą RevPar reflects the revenue (sales)
relative to total rooms available for sale.
âą Remember,
âą Total room sales must not include taxes
nor the value of free breakfasts or free
parking.
âą The number of rooms available must
include vacant rooms but not those
permanently assigned to other uses.
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14. Double Occupancy (Percentage of Double Occupancy)
âą Multiple occupancy is a better term than double
occupancy because more than two guests may be housed
in one room.
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16. Break-Even Point
âą To break even is to have neither profit nor loss.
âą Inflows from revenues match exactly outflows
from costs.
âą Break-even points are important, because
there is no profit until that point is reached.
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17. Example
17
âą Compute for:
âą % of Occupancy
âą ADR
âą RevPar
âą Number of Employees per guest room
âą % of Double Occupancy
âą Number of Rooms Available for Sale â 640
âą Number of Rooms in the Hotel â 643
âą Number of Rooms Sold â 520
âą Income from Room Sales - $ 149,920
âą Employees on staff â 461
âą Number of guests last night â 600
23. Example
23
âą Compute for:
âą % of Occupancy
âą ADR
âą RevPar
âą Number of Employees per guest room
âą % of Double Occupancy
âą Number of Rooms Available for Sale â 140
âą Number of Rooms in the Hotel â 142
âą Number of Rooms Sold â 138
âą Income from Room Sales â PHP. 1,100,600
âą Employees on staff â 100
âą Number of guests last night â 168
29. Seatwork â Âœ crosswise
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âą Number of Rooms Available for Sale â 421
âą Number of Rooms in the Hotel â 500
âą Number of Rooms Sold â 390
âą Income from Room Sales â PHP. 785,400
âą Employees on staff â 352
âą Number of guests last night â 477
âą Compute for:
1. % of Occupancy
2. ADR
3. RevPar
4. Number of Employees per guest room
5. % of Double Occupancy
âą Number of Rooms Available for Sale â 230
âą Number of Rooms in the Hotel â 265
âą Number of Rooms Sold â 189
âą Income from Room Sales â PHP. 300,500
âą Employees on staff â 90
âą Number of guests last night â 201
âą Compute for:
1. % of Occupancy
2. ADR
3. RevPar
4. Number of Employees per guest room
5. % of Double Occupancy