A recent annual report of Hilton Worldwide Holdings Inc. (HLT) and Marriott International Inc. (MAR) provided the following occupancy data for two recent years:

Year 2 Year 1

Hilton Hotels 74.6% 72.2%

Marriott International 73.3% 71.3%

Is the change in the occupancy rate favorable or unfavorable for Hilton Hotels?

Question

Axel Ross

Business

6 March, 20:12

A recent annual report of Hilton Worldwide Holdings Inc. (HLT) and Marriott International Inc. (MAR) provided the following occupancy data for two recent years:

Year 2 Year 1

Hilton Hotels 74.6% 72.2%

Marriott International 73.3% 71.3%

Is the change in the occupancy rate favorable or unfavorable for Hilton Hotels?

+2

Answers (1)

Know the Answer?

Zander Hess · Answer 1

The occupancy rate in the Hilton hotels is unfavorable because they are less productive, therefore they are not going to obtain better profits.

Explanation:

Occupancy in the business of hotels in the generator of consumption and income flow. So if the rate of occupancy decreases, the income will reduce I they remain at the same prices. However, if they decide to adjust prices they could make even more money. Nevertheless, that is not mentioned in the information. So I will assume that they are not going to increase the price of their services.