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Overall financial Yield

The ABC Resort is considering hosting a prestigious corporate awards convention next year that will require 55% of the total rooms in the resort for 8 days and 7 nights during the resort's peak season. The convention group, comprised of professionals in their early 30s and 40s, will have all breakfasts, all lunches, and three dinners in the resorts banquet area. For the remaining four nights of the convention, the professionals will be on their own.

This is the question that needs to be answered:

What is the Overall financial yield for each segment of the resort? Please explain.

Here is the information about the resort:

ABC Resort Information

Hotel Tourism Market Segment
Average daily Rate (ADR) $198.00
Overall Property Occupancy-Season 87.8 %
Average number of guests per room 2.85
Average length of stay 4.25 days
Average Food sales per guest $ 36.00 per day restaurant and cafe
Average Beverage sales per guest $ 6.25 per day lounge
Average misc. sales per guest $ 9.10 per stay shops

Hotel Convention Market Segment
Average daily Rate (ADR) $168.00
Average number of guests per room 2.0
Average length of stay 7.25 days
Average Food sales per guest $ 45.00 per day-banquet [Restaurant - café, -unknown]
Average Beverage sales per guest $ 10.55 per day-banquet
Average misc. sales per guest $ 12.35 per stay-shops

Operating Department Costs
Rooms 22%
Restaurant 85%
Bar 55%
Banquet Food 36%
Banquet Bar 40 %
Shops 90 %

Solution Summary

Overall financial yield for ABC Resort is examined. The prestigious corporate awards are examined.

$2.19