Utilization Rate

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

For August, each chain reported the following:

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