ACCA Applied Knowledge · Management Accounting · Monitoring performance and reporting
A hotel has 80 rooms available for 365 days in a year. Room-nights occupied were 21,900 and total revenue from rooms was $2,190,000. What is the revenue per available room-night (RevPAR) and the occupancy rate?
RevPAR is $75 and occupancy is 75%. Available room-nights are 29,200, so occupancy is 21,900 divided by 29,200, or 75%, and revenue of $2,190,000 divided by available room-nights gives $75. The $100 figure is revenue per occupied room.
- ARevPAR $75; occupancy 75%Correct
- BRevPAR $100; occupancy 75%
- CRevPAR $75; occupancy 100%
- DRevPAR $100; occupancy 100%
Explanation
Available room-nights = 80 x 365 = 29,200. Occupancy = 21,900 / 29,200 = 75%. RevPAR = 2,190,000 / 29,200 = $75. Revenue per occupied room is $100, which is not RevPAR.
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