Five Seasons Hotel is a chain with 10 hotels. Strategically, the chain implements a cookie-cutter approach to building and running its hotels, in that all hotels are practically identical. Five Seasons invested $150 million in acquiring the land for all hotels and $500 million in building and furnishing the 10 hotels to a guest-ready stage. Each hotel has 150 rooms. Each room has a rack rate of $200 per night but the hotel gives an average of discount of $30 per night off this base price. Each hotel costs $1 million in materials to run, and is staffed by 58 employees, each paid an average compensation of $50,000 a year. This staffing level implies a certain service level, which together with the rack rate and discount, determines the chain’s average occupancy rate—the percent of available rooms sold—in this approximate way:
Chain-wide average occupancy rate = 0.01 ? number of employees per hotel
? ( 0.0015 ?base Price ) + ( 0.01 ? discount),
subject to a maximum of 100% and minimum of 0% (base Price and discount are expressed in [$]). The company operates 365 nights a year.
1. Draw the ROIC tree and discuss its structure.
2. Use this tree to compute the current ROIC?
3. Reducing the number of employees reduces staffing costs, but it also reduces the occupancy rate when service level drops. What is the ROIC if Five Seasons reduces the number of employees to 50 per hotel?

The structure of the hotel industry

1- Describe the organizational chart of a 68-room, economy class hotel, franchised under a major chain’s logo, which has no food and beverageservice, not even breakfast.
2- Sketch the floor plan of the same hotel described abov

FORECASTING AVAILABILITY AND OVERBOOKING

A- On October 6, a 300-room property had occupancy of 70%. What is forecasted occupancy for October 7 if:
• 10 rooms are put out-of-order at 9am on October 6
• 150 rooms are on reservation
• Registration information indicates 101 rooms will depart today
• The hotel as an historical 6% cancellation rate
• The hotel as an historical 10% no-show rate

B- Assume that a 200-room hotel sold 50% of its rooms last night. Today, we anticipate that 75 rooms will depart. We hold60 6pm reservations and 90 guaranteed reservations. There are no advance deposits. What is the forecasted number of rooms available for sale
C- Assume that a given property has 300 rooms. After accounting for the day's departures and arrivals, 100 roomsremain unsold. Of these 100 rooms available, 50 rooms cannot be sold because they are out-of-inventory. In this case, theforecasted occupancy percentage would be

note : please expert right the answer on a paper to avoid plagorism paper and download it here . thankyou for your help

this is not a marketing class its front office

A restaurant manger, Coleman, at the Four Seasons Hotel wants to predict/forecast a number of meals to be prepared for the breakfast since the labor costs and cost of good sold are vey high and does not want to create high volume of waste and manage the inventory in a proper way.

He looks through the previous data (2016) to determine the relationship between the number of guest stayed at the hotel and number of meals served from the following data:

Number of guest stayed at the hotel (Guest)      Number of meals (breakfast) served (Meals)

Guest   Meals

23        69

29        95

29        102

35        118

42        126

46        125

50        138

54        178

64        156

66        184

76        176

78        225

1. Run the regression analysis using MegaStat (Excel)
2. Run the Scatter Plot
3. Determine the relationship: Y = A + BX (whether this data is good to RUN/USE for constructing the relationship between

Y = (describe which one is used for Y):

X = (describe/identify which one is used for X):

A = (A refers to ?) and provide a number

B = (B refers to ?) and provide a number

4. Sara wants to prepare the breakfast for tomorrow based on the guests number of 70. Determine how many meals to be prepared for tomorrow?

Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy property located in the suburbs of a large western town. The other corporation is a 350‐room full‐service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property. Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow.

1. What was the amount of cash in the 90‐room property's Cash in House Banks account at year end?
2. What is the amount of Allowance for Doubtful Accounts in the 350‐room property? Do you think it is excessive? Explain your answer?
3. What would explain the lack of a beverage inventory value in the 90‐room hotel?
4. What was the dollar amount of Total Assets in the 90‐room hotel?
5. What was the dollar amount of Total Assets in the 350‐room hotel?
6. What was the dollar amount of Current Maturities of Long‐Term Debt in the 350‐room property? Why is that amount likely so much higher than for the 90‐room property?
7. What was the dollar amount of Paid in Capital for the 90‐room property?
8. What is the Owners' Equity percentage of Total Assets in the 90‐room property? What is it in the 350‐room property?

1. 8. BONUS: Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy property located in the suburbs of a large western town. The other corporation is a 350‐room full‐service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property. Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow.

   Nilam Patel's Two Hotel's Balance Sheets

   	December 31		Common Size
   	90‐Room Property	350‐Room Property	90‐Room Property (%)	350‐Room Property (%)
   ASSETS
   Current Assets
   Cash
   Cash in House Banks		$86,000
   Cash in Demand Deposits	85,000	330,250
   Total Cash	103,500	416,250
   Short‐Term Investments	56,000	165,000
   Receivables
   Accounts Receivable	150,000	327,150
   Notes Receivable	35,000	136,250
   Other	750	30,800
   Total Receivables	185,750	494,200
   Less Allowance for Doubtful Accounts	19,250
   Net Receivables	166,500	431,900	1.4	1.1
   Due from Management Company	—	50,000	0.0	0.1
   Food Inventories	15,125	69,750	0.1	0.2
   Beverage Inventories	—	42,550	0.0	0.1
   Gift Shop Inventories	300	6,950	0.0	0.0
   Supplies Inventories	6,550	13,550	0.1	0.0
   Prepaid Expenses	56,000	120,100	0.5	0.3
   Deferred Income Taxes—Current	48,000	135,000	0.4	0.3
   Total Current Assets
   Investments	72,500	274,150	0.6	0.7
   Property and Equipment
   Land	2,000,000	8,450,000
   Building	6,500,000	18,500,000
   Leaseholds and Leasehold improvements	2,037,250	5,850,000
   Furnishings and Equipment	1,288,000	3,105,000
   Total Property and Equipment	11,825,250	35,905,000
   Less Accumulated Depreciation and Amortization	575,000	2,575,000
   Net Property and Equipment	11,250,250	38,480,000
   Other Assets
   Intangible Assets	—	75,000	0.0	0.2
   Deferred Income Taxes—Non‐current	66,000	158,000	0.6	0.4
   Operating Equipment	35,100	111,000	0.3	0.3
   Restricted Cash	25,000	95,000	0.2	0.2
   Total Other Assets	126,100	439,000	1.1	1.1
   TOTAL ASSETS			100.0	100.0
   LIABILITIES AND OWNERS' EQUITY
   Current Liabilities
   Notes Payable
   Banks	17,500	116,250	0.1	0.3
   Others	8,000	17,500	0.1	0.0
   Total Notes Payable	25,500	133,750	0.2	0.3
   Accounts Payable	2,500	125,100
   Accrued Expenses	45,000	42,500
   Advance Deposits	500	42,250
   Income Taxes Payable	15,000	78,000
   Deferred Income Taxes—Current	40,000	235,000
   Current Maturities of Long‐Term Debt	420,000
   Other	50,000	58,000
   Total Current Liabilities	598,500	2,399,600	5.0	5.9
   Long‐term Debt, Net of Current Maturities
   Mortgage Note		24,383,030
   Obligations Under Capital Leases	18,000	385,000	0.2	0.9
   Total Long‐Term Liabilities	6,868,000
   Owners' Equity
   Common Stock	500,000	2,000,000
   Paid in Capital		8,711,500
   Retained Earnings	879,325	2,765,070
   Total Owners' Equity	4,434,325	13,476,570
   TOTAL LIABILITIES AND OWNERS' EQUITY			100	100

   1. What was the amount of cash in the 90‐room property's Cash in House Banks account at year end?
   2. What is the amount of Allowance for Doubtful Accounts in the 350‐room property? Do you think it is excessive? Explain your answer?
   3. What would explain the lack of a beverage inventory value in the 90‐room hotel?
   4. What was the dollar amount of Total Assets in the 90‐room hotel?
   5. What was the dollar amount of Total Assets in the 350‐room hotel?
   6. What was the dollar amount of Current Maturities of Long‐Term Debt in the 350‐room property? Why is that amount likely so much higher than for the 90‐room property?
   7. What was the dollar amount of Paid in Capital for the 90‐room property?
   8. What is the Owners' Equity percentage of Total Assets in the 90‐room property? What is it in the 350‐room property?

by deed, the bland family donated 50 acres of land to the city for the use of a park upon condition that the park be used for whites only and if this ever ceased to be the use, the property would revert back to the family. this provision in the deed is a condtion subsequent. True or False?

A quality control activity analysis indicated the following four activity costs of a hotel:

Sales are $3,900,000. Prepare a cost of quality report. Round percent of sales to one decimal place.

Fadwa is the general manager at the 125-room select-service. Fadwa has just taken a call from Lawrence's hotel. Because of an internal oversight, Lawrence's hotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchase that number of rooms from Fadwa at their previously agreed upon walk rate of $75 per night. Fadwa's normal ADR is $129.00 and her cost of cleaning a room is $17. Currently, Fadwa had 55 occupied rooms (arrivals and stayovers) on the books for that day. She forecast that she could sell, at her normal ADR, another 30 rooms by Saturday. Fadwa typically generates $8 in ancillary revenue from each of her occupied rooms. Before replying to Lawrence's request, she summarized her forecasted rooms sale-related information in a chart so she could better understand the impact of accepting or rejecting Lawrence's walked guests. FILL IN THE CHART AND ANSWER THESE QUESTIONS BELOW

a. What would be Fadwa’s ADR if she accepted all of Lawrence’s walked rooms?

Answer:

b. What would be Fadwa’s RevPOR with the walked rooms?

Answer:

c. What would be Fadwa’s RevPOR without the walked rooms?

Answer:

d. What would be the net total revenue (RevPOR – Rooms dept. cost POR) difference in her hotel's revenue if Fadwa agree to take the rooms?

Answer:

e. What would be the percentage difference in her hotel’s net total revenues if Fadwa agree to take the rooms?

Answer:

f. If you were Fadwa, would you accept the walked rooms from Lawrence’s hotel? Why or why not.

Answer:

CASE STUDY /big 4 Consultants has been appointed by a leading group in hotel industry to prepare feasibility report for opening a five-star hotel in Ras al Khaima. The group had been most successful one in the hotel industry and had always kept its eyes open for new opportunities.

In view of the very fast industrial growth in the city of Ras al Khaima, the city had attracted the attention of the group. It is historically known as Julfar, is one of the seven emirates that make up the United Arab Emirates (UAE). Its name could be taken to mean "headland of the small huts", which can be attributed to the indigenous buildings that existed along the coast. The Emirate is in the northern part of the UAE, bordering Oman’s exclave of Musandum. RAK, apart from being a developing city, has added advantage of pleasant weather and several places of tourist attraction in the neighborhood. Moreover, the closeness to Dubai and Abudhabi, a city of international stature, has made it very easily accessible to international tourists.

For this Consultancy, this was the first time in this area that an assignment concerning hotel industry had been received. They, however, soon realized that the assignment was not as simple as it appeared to be in the first place. The feasibility of such a hotel would depend essentially on two factors. Businessman visiting the city for work would constitute one segment of the market, while tourists would constitute the other. Further, the tourists could be from UAE or foreigners. The success of such a hotel would also depend upon the relative attraction of other tourist centres in the vicinity. Further, it was necessary to estimate fluctuations in demand for hotel accommodation so that attractive discounts could be offered during the off-season for business conferences, executive developmental programmes, etc.

The consultants realized that they would have to undertake a market research on a national scale to assess the tourist potential of the city. They would also have to survey the foreign tourists to estimate one of the most important segments of the market. They wondered whether such a survey will have to extend over a period of one full year to completely take into account the seasonal variations in tourists’ traffic. Moreover, they were undecided about the manner in which survey should be conducted. The company also feared that in absence of an accurate definition of the problem, they may land up surveying the complete tourist market in UAE rather than studying feasibility of a hotel in RAK.

Thus, the problem appeared well defined and that they were concerned as the preliminary report explaining methodology of the research and the questionnaires to be used to be submitted to the client along with the estimate of expenses within one month.

QUESTIONS

1. Apply your ideas in defining the problem of assessing feasibility of hotel in RAK so as

    to help designing the survey.

2. It is important to plan a survey for collecting information on expected demand for

    hotel space. Illustrate.

3. Being the coordinator of this research at Big 4 Consultants, explain various steps you

    would suggest to your research team in preparing the report to the Hotel management.

Case 2 Running Free Dog owners constitute a large target market. Most members share something in common: the desire to let the pet run free and unfettered. If other friendly dogs are nearby and want to play—all the better. The Running Free Dog Park was created to meet this need for owners in the greater Atlanta area. Out-of-home advertising can be the critical component of an IMC program and, in some cases, the primary medium. To help launch the new venture, a local advertising agency created a feeling of expectancy and mystery with a “Running Free Dog Park” campaign. The first billboard displayed a dog tied up with a leash; however, it was only a partial picture. The unfinished nature of the image helps capture interest. Next, the same dog is shown with an unfastened leash and the word “running” appears beneath the pet. In the final billboard, the dog appears unfetters, the leash is gone, and the message “Running Free Dog Park” appears. The billboard displays the services offered, the website address of the park, and the location of the park. In addition to billboards, street kiosks and bus wraps were used to get the message out. Three unleashed dogs in the grass of a park. A dog park can be marketed as a place for pets to run free. The early results of the campaign were positive. Many dog owners became aware of the new park. What followed represented common challenges in marketing communications: sustaining initial interest, moving consumers to action, and building repeat business. In this next phase, dog owners needed to be encouraged to try the facility. They should be led to believe that the price of entry was a value. Then, over time, they can be enticed to make return visits and to offer word-of-mouth referrals to other pet owners. Only if these objectives can be attained will the initial success of the Running Free campaign become validated. 7-48.Define the marketing goals for the second phase of the Running Free Dog Park promotional efforts.

7-49.How would the three-exposure hypothesis or recency theory apply to this advertising program in its initial stages? What about the second campaign after consumers are aware of the dog park?

7-50.Which traditional advertising media should the marketing team use for the second campaign? Discuss the pros and cons of each in terms of the Running Free Dog Park campaign and the desire to stimulate trial usage.

7-51.How could social media and nontraditional media be used to supplement a traditional media campaign in this circumstance?

7-52.Design a newspaper ad and an out-of-home ad that will be placed at Little League baseball parks in the area. Explain why having these two ads in different media is better than having two ads within the same media.