Reference no: EM132920894

The MSRED Hotel is a 250-room hotel, open 365 days a year with total departmental expenses of $7,000,000 that are made up of just F&B and room expenses and there is no other type of departmental revenue or expense outside of these two categories. The F&B expenses total $3,000,000, the room occupancy cost is 20%, and average hotel occupancy is 78%.

Problem 1: What is the total room revenue at the MSRED hotel?

Option 1: $35,000,000

Option 2: $15,000,000

Option 3: $20,000,000

Option 4: $5,000,000

Problem 2: What is the ADR

Option 1: $250

Option 2: $284

Option 3: $281

Option 4: $219

Problem 3: What is the RevPAR

Option 1: $219

Option 2: $250

Option 3: $284

Option 4: $281

Problem 4: What is the Departments Net Income if the MSRED Hotel's F&B department has a 75% expense ratio?

Option 1: $17,000,000

Option 2: $24,000,000

Option 3: $7,000,000

Option 4: $21,000,000