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(Solved): Utilization Rate Stop-N-Stay And Paradise Inn Operate Motels Across The Northwest. Operating Data Fo ...

Utilization Rate

Stop-N-Stay and Paradise Inn operate motels across the northwest. Operating data for each chain are as follows:

Hotels Rooms per Hotel Total Rooms
Stop-N-Stay 50 180 9,000
Paradise Inn 60 175 10,500

For August, each chain reported the following:

Room Nights
Average Daily
Room Rate
Stop-N-Stay 239,940 $125
Paradise Inn 292,950 $ 95

1. Determine the occupancy rate for Stop-N-Stay for August.

2. Determine the occupancy rate for Paradise Inn for August.

3. Determine the total room revenue for each chain for August.
Stop-N-Stay $
Paradise Inn $

4. Compare and comment on the operating results for each chain.

"Stop N Say / Paradise Inn" a higher occupancy rate.   

"Stop N Say / Paradise Inn" has a higher average daily room rate.  

"Stop N Say / Paradise Inn" higher daily room rate offsets the effects of the lower occupancy rate

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