1. A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of...
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1. A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of $117.98. What is the propertys franchise fee (1) on a per available room basis and (2) as a percentage of rooms revenue if the agreement required the hotel to pay a reservation fee of $7.65 per available room per month; a royalty fee of 5% of rooms revenue; an advertising fee of 2.3% of rooms revenue; and a frequent traveler program fee of $5.00 per occupied room. The hotel had frequent stay guests totaling 6% of the occupied rooms. The initial fee is a minimum of $45,000 plus $300 per room for each room over 150.
Please calculate annual room revenue (round to a whole number) $ ___
2.Please use the information from Question 1 to calculate the Royalty Fee.
Royalty fee (round to a whole number) $ ___
3. Please use the information from Question 1 to calculate the Reservation Fee.
Reservation fee (round to a whole number) $ ___
4. Please use the information from Question 1 to calculate the Advertising fee.
Advertising fee (round to two decimal places) $ ___
5.Please use the information from Question 1 to calculate the Frequent traveler fee.
Frequent traveler fee (round to two decimal places) $ ___
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