Question

Comparing occupancy for two hotels

Sunrise Suites and Nationwide Inns operate competing hotel chains across the region. Hotel capacity information for both hotels is as follows:

Number of Hotels				Average Number of Rooms per Hotel
Sunrise Suites			120					90
Nationwide Inns			150					76

Information on the number of guests for each hotel and the average length of visit for June were as follows:

	Number of Guests				Average Length of Visit (in Nights)
Sunrise Suites			183,600					1.5
Nationwide Inns			228,000					1.2

a. Determine the guest nights for each hotel in June. Guest Nights Sunrise Suites: Nationwide Inns:

b. Determine the room nights for each hotel in June. Room Nights Sunrise Suites: Nationwide Inns:

c. Determine the occupancy rate of each hotel in June. Occupancy Rate Sunrise Suites % Nationwide Inns

Answer 1

Formula sheet

A	B	C	D	E	F	G	H	I
2
3
4			Number of Hotels	Average Number of Rooms per Hotel
5		Sunrise Suites	120	90
6		Nationwide Inns	150	76
7
8			Number of guests	Average Length of visits (in Nights)
9		Sunrise Suites	183600	1.5
10		Nationwide Inns	228000	1.2
11
12		a)
13
14		Guest nights	=Number of guests* Average length of visits (in Nights)
15
16			Number of guests	Average Length of visits (in Nights)	Guest Nights
17		Sunrise Suites	183600	1.5	=D17*E17	=D17*E17
18		Nationwide Inns	228000	1.2	=D18*E18
19
20		Hence number of guest nights are:
21		Sunrise Suites	=F17
22		Nationwide Inns	=F18
23
24		b)
25
26		Number of Days in June	30	Number of days in June
27		Room nights will be the total number of nights available which can be calculated as below:
28
29			Number of Hotels	Average Number of Rooms per Hotel		Room Nights
30		Sunrise Suites	120	90	30	=D30*E30*F30	=D30*E30*F30
31		Nationwide Inns	150	76	30	=D31*E31*F31
32
33		Hence total room nights available are:
34		Sunrise Suites	=G30
35		Nationwide Inns	=G31
36
37		c)
38
39		Occupancy Rate	=Number of guest nights / Total number of room nights available
40
41		Occupancy rates can be calculated as follows:
42			Number of guest nights	Total number of room nights available	Occupancy Rate
43		Sunrise Suites	=D21	=D34	=D43/E43	=D43/E43
44		Nationwide Inns	=D22	=D35	=D44/E44
45
46		Hence occupancy rates are
47		Sunrise Suites	=F43
48		Nationwide Inns	=F44
49