Reference no: EM132660111

Jeremy Jordan is the revenue manager at the DoubleTree Philadelphia. Ben is the property's FOM and Heather is the DOSM. All three serve on the hotel's RM committee. The hotel has 175 rooms. Next month the hotel will serve as the host hotel for the New Jersey State Association Firefighter's Convention. The Association originally blocked 90 rooms per night for Thursday, Friday, and Saturday nights at a rate of $99.00 per night. All the rooms in their block have been picked up. The current rooms availability forecast for the three days of the meeting is as follows:

Date:	Thursday	Friday	Saturday
Reserved
Firefighters' rooms @ $ 99.00/night	90	90	90
All Other rooms @ $149.99/night	55	35	45
Total Reserved	145	125	135
Total Rooms Available	30	50	40

The group has requested that Heather add 20 rooms each night to its block at the originally contracted rate of $99.00. It states that its members will use all of the additional rooms if they are made available, but if not, they will move their remaining 20 attendees down the street to the Comfort Inn. Heather is in favor of increasing the block and keeping the group together. Ben is opposed. He is convinced he can sell 20 more rooms on Thursday, 40 rooms on Friday, and 30 rooms on Saturday at the normal rack rate of $149.99. Under his plan, he states, "The hotel can maximize its ADR."

Based on Ben's estimate of future sales to be made at rack rate, Jeremy knows the hotel will sell out and maximize its occupancy percentage under Heather's plan. Help Jeremy analyze the data he needs to answers the questions that follow by filling in the chart.

Question 1: What would the hotel's ADR be under Heather's plan?

Question 2: What would the hotel's RevPAR be under Heather's plan?

Question 3: Who's plan would you advise Poco to support? Explain your rationale.