Question: Six competitive motor hotels have the following number of rooms and current occupancy rates.
Demand for rooms in the area where the motor hotels are located is broken down into the following sources and growth rates:
a. Calculate the current average occupancy of the six motor hotels.
b. Calculate the composite rate of growth in demand.
c. Apply the composite growth rate to the demand figures to obtain projected demand for each of the next four years.
d. Assume the average room occupancy is 75% for the motor hotels in this area and is considered profitable. Assume also that Motor Hotel 3 is due to be demolished in Year 2 to make way for a new highway. Calculate the future supply of rooms that could be supported for each of the next four years.