Assume That a 350-Room Hotel Sold 70% of Its Rooms

Multiple Choice

Assume that a 350-room hotel sold 70% of its rooms last night. Today, we anticipate that 150 rooms will depart. We hold 120 that are 6 p.m. reservations and 150 that are guaranteed reservations. Ten (10) rooms are reported to be out of inventory after last night's damaging monsoon. We know historically that understays are 5% and overstays are 7% of occupied rooms; that early arrivals are 2% and cancellations are 6% of expected arrivals. No shows for 6 p.m. reservations are 10%; no shows for guaranteed reservations are 3%. How many rooms are available to walk-ins?

A) +0
B) -7
C) -2
D) +3
E) None of the above