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Room Occupancy Ratio

Tutorial - Week 6
Introduction To Hotel & Tourism
Industries

Objectives
You will be able to calculate Room
Occupancy Ratio, Rev Par and
Average Daily Rate
You will be able to list the purpose of
Room Occupancy Ratio, Rev Par and
Average Daily Rate

Night Audit
A hotel must balance its accounts on a
daily basis
The daily report contains a key operation
ratio Room Occupancy % (ROP).
Number of
rooms occupied
Room Occupancy % (ROP) =
-----------------------------------------Number of
rooms available

Occupancy report lists rooms occupied


that night and indicated guest expected
to check out the following day

Example 1 (ROP)
Hotel Icon has 262 rooms
On 12th of October, only 146 rooms
sold
What is the Room Occupancy
Percentage for that day?
ROP = 55.7 %

Example 2 (ROP)
Hotel Icon has 262 rooms
On 12th of October, only 146 rooms
sold
For the next 6 days, the rooms sold
respectively are : 187, 196, 244, 210,
198, 165
What is the Room Occupancy
Percentage for that week (7 days)?
ROP = 73.4 %

Night Audit
Revenue per available room (REV PAR):
Hotels use REV PAR to see how they are
doing compared to their competitive set of
hotels.
Room revenue
REV PAR = -----------------------------------Number of rooms available

Example 1 (RevPar)
Hotel Icon has 262 rooms
Hotel Icons room revenue on 13th
October is : HKD 329,120
What is the Hotel Icons RevPar for
that day?

RevPar = HKD 1256.2

Example 2 (RevPar)
Hotel Icon has 262 rooms
The average of Hotel Icons room
revenue from 13 20 October is :
HKD 379,240
What is the Hotel Icons RevPar for
that week?

RevPar = HKD 1447.5

Night Audit
Average daily rate is used to
evaluate an average rate charged at
a property
Room revenue
ADR = -----------------------------------Number of rooms sold

Example 1 (ADR)
On 12th of October, Hotel Icon sold
146 rooms
On the same day, Hotel Icons room
revenue is : HKD 329,120
What is the Hotel Icons ADR for that
day?
ADR = HKD 2254.2

Example 2 (ADR)
On 12th of October, Hotel Icon sold rooms with following
detail:
45 rooms sold directly to end-users; HKD 2100 per room per
night
51 rooms sold to OTA; HKD 1450 per room per night
10 rooms sold to Traditional Travel Agents; HKD 1600 per room
per night
40 rooms to company (Meeting arrangements); HKD 1350 per
room per night

What is the Hotel Icons ADR for that day?

ADR = HKD 1633.2

EXERCISES

1. Exercise-1 (ROP)
Hotel Shangri-La has 345 rooms
On 15th of October, 226 rooms sold
What is the Room Occupancy
Percentage for that day?

2. Exercise-2 (ROP)
Hotel Shangri-La has 345 rooms
For the last 7 days, the rooms sold
respectively are : 247,320, 286, 293,
299, 304, 312
What is the Room Occupancy
Percentage for that week (7 days)?

3. Exercise-3 (ROP)
Hotel Shangri-La has 345 rooms
For the last 4 weeks, the average
rooms sold respectively are : 324.4;
320.6; 296.8; and 304.7
What is the Room Occupancy
Percentage for that month?

4. Example-1 (RevPar)
Hotel Ovolo has 182 rooms
Hotels room revenue on 13th October
is : HKD 334,200
What is the Hotels RevPar for that
day?

5. Example 2 (RevPar)
Hotel Ovolo has 182 rooms
The average of Hotels room revenue
from 13 20 October is : HKD
190,270
What is the Hotels RevPar for that
week?

6. Exercise-1 (ADR)
On 12th of October, Hotel Icon sold
199 rooms
On the same day, Hotel Icons room
revenue is : HKD 541,120
What is the Hotel Icons ADR for that
day?

7. Exercise-3 (ADR)
On 12th of October, Hotel Icon sold rooms with
following detail:
35 rooms sold directly to end-users; HKD 2200 per
room per night
41 rooms sold to OTA; HKD 1650 per room per
night
17 rooms sold to Traditional Travel Agents; HKD
1800 per room per night
47 rooms to company (Meeting arrangements);
HKD 1450 per room per night

What is the Hotel Icons ADR for that day?

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