A 100-room hotel has an ADR of $100, annual fixed cost of $1,000,000, variable cost per room sold of $10 and average occupancy of 70%. Find the required occupancy if initial equity investment in the...

A 100-room hotel has an ADR of $100, annual fixed cost of $1,000,000, variable cost per room sold of $10 and average occupancy of 70%. Find the required occupancy if initial equity investment in the hotel was $2,000,000 and owners require an annual rate of return of 15% and tax rate is equal to 35%. Assume 30 days in a month and 360 days in a year.

Jun 11, 2022

Get Answer To This Question