Reference no: EM132688723

Poco Miller is the RM at the Hampton Inn. Mark is the property's FOM and Latisha is the DOSM. All three serve on the hotel's RM committee. The hotel has 175 rooms. Next month the hotel will serve as the host hotel for the Retired Firefi ghters Association. The Association originally blocked 90 rooms per night for Thursday, Friday, and Saturday nights at a rate of $99.00 per night. All the rooms in their block have been picked up. The current rooms availability forecast for the three days of the meeting is as follows:

• The group has requested that Latisha add 20 rooms each night to its block at the originally contracted rate of $99.00. It states that its members will use all of the additional rooms if they are made available, but if not, they will move their remaining 20 attendees down the street to the Comfort Inn. Latisha is in favor of increasing the block and keeping the group together. Mark is opposed. He is convinced he can sell 20 more rooms on Thursday, 40 rooms on Friday, and 30 rooms on Saturday at the normal rack rate of $149.99. Under his plan, he states, "The hotel can maximize its ADR." Based on Mark's estimate of future sales to be made at rack rate, Poco knows the hotel will sell out and maximize its occupancy percentage under Latisha's plan. Help Poco analyze the data she needs to answers the questions that follow by filling in the chart.

Question A. What would the hotel's ADR be under Mark's plan?

Question B. What would the hotel's RevPAR be under Mark's plan?

Question C. What would the hotel's ADR be under Latisha's plan?

Question D. What would the hotel's RevPAR be under Latisha's plan?

Question E. Who's plan would you advise Poco to support? Explain your rationale.