Question 5:

With data from the five hotels provided below, conduct a supply and demand analysis.

1. Calculate the current nightly demand and the average occupancy for the five hotels.

Hotel	Average Rooms in Hotel	Average Occupancy	Current Nightly Demand
A	150	80%	120%
B	125	75%	94%
C	85	70%	60%
D	195	85%	166%
E	105	90%	95%
Total	660		535%

What is the average occupancy for the five hotels? (rounded to the nearest hundredth place)	80%
Total Marks (8 Points)

2. Calculate the composite growth for each source of travellers and the total rate. Rounded to the nearest hundredth place.

Source	Source of Demand	Annual Compound Growth	Composite Growth
Business Travellers	25%	8%	27%
Convention Delegates	35%	6%	37.1%
Vacationers	40%	4%	41.6%
Total	100%		105.7%

Total Marks (4 Points)

C. Apply the composite growth rate to the demand figures to obtain projected demand for each of the next 5 years. Rounded to the nearest whole number for Composite Demand and Rooms Demand; and rounded to the nearest hundredth place for Future Growth.

Year	Composite Demand	Future Growth	Rooms Demand
1	?	?	?
2	?	?	?
3	?	?	?
4	?	?	?
5	?	?	?

Total Marks (15 Points)

D. Assume that a 70% average room occupancy for the hotels would be profitable. Calculate the future supply of rooms that could be supported for each of the next 5 years.

Year	Rooms Demand	Normal Occupancy	Supply Required	Current Supply	New Rooms Required
Current	?	70%	?	?	?
1	?	70%	?	?	?
2	?	70%	?	?	?
3	?	70%	?	?	?
4	?	70%	?	?	?
5	?	70%	?	?	?

Total Marks (24 Points)

KINDLY HELP WITH ANSWER C AND D