ShadyPalms Hotel has 100 rooms. During the month of February, it had 500 guests, each staying 5 nights. The occupancy rate for ShadyPalms Hotel for the month of February (not a leap year) was closest to a. 80% b. 90% c. 120% d. 70%

The correct answer is option (b) 90%

Explanation:

Solution

Given that:

Shady Palms Hotel has = 100 rooms

For the month of February it had guests of = 500 (5 nights)

Now,

We find the rate of occupancy for the hotel for the month of February

Thus,

The total number of rooms = 28 days

=100 * 28 = 2800

Occupancy = 500 * 5 = 2500

So,

The rate of occupancy becomes = 2500/2800

=89.29% which is also 90%