How many excess rooms are there in the community

Assignment Help Business Economics

Reference no: EM13981051

Hotel X believes that there is an opportunity to build a profitable hotel in City XYZ but they are not sure whether to go ahead with the project. They have asked your group for advice. After some research you have the following information. Last year there were 1.25 million visitors to the area and it is expected to be 1.35 next year. Seventy five percent of those visitors stayed in hotels with an average of 3 people per room. The stayed an average of 4 nights. The occupancy rate in the area is 65%. As with most hotels they plan on being open every day of the year. In addition based on your research you believe your market share will be 2%. Currently the community has 5,500 hotel rooms. Based on this information should Hotel X build, if so how many, if not how many excess rooms are there in the community? Provide the formula you use to determine your answer and show all your work.

R = (T x P x L) ÷ (S x N)

R = Rooms demand per night

T = # of tourist

P = % staying in a hotel

L = average length of stay

N = average # of persons per room

S = # of days per year in business

Reference no: EM13981051

Questions Cloud

Residents of a new subdivision : In the following situations, decide whether you would use a personal interview, observation, mailed questionnaire or telephone interview. Give your reasons. a) A survey of the residents of a new subdivision on why they happened to select that area..

Government control and the associated deadweight loss : The aluminum industry faces a private marginal cost curve PMC = Q and a market inverse-demand curve of PD = 20 – QD. However, production creates an externality with marginal damages of MD = 2. Graph the private marginal cost, the social marginal cost..

How can use hubble parameter as expansion-velocity-per-unit : So which one is it? If 1/H is simply the solution for D=0, how can we use Hubble parameter as the expansion-velocity-per-unit-of-distance at the same time?

What are the causes of school violence in america : What is school violence? What defines it? What are the causes of school violence in America? Who does it affect

How many excess rooms are there in the community : Hotel X believes that there is an opportunity to build a profitable hotel in City XYZ but they are not sure whether to go ahead with the project. They have asked your group for advice. After some research you have the following information. Currently..

Sample format for review of literature : Hint: The Topic 2 readings provide appraisal questions that will assist you to efficiently and effectively analyze each article. Refer to "Sample Format for Review of Literature," "RefWorks," and "Topic 2: Checklist."

Name three diseases associated with pneumoconiosis : What are the four basic steps in Risk Assessment as defined by the National Research Council and what does each component consist of?

Cattle has coincided with a decrease in consumer incomes : A drought in Alberta and Saskatchewan has made grain, and therefore cattle feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter. As it happens, the slaughter of beef cattle has coinci..

Questionnaire or telephone interview : In the following situations, decide whether you would use a personal interview, observation, mailed questionnaire or telephone interview. Give your reasons.

User Account

All Pages