Interviewer view · keep this screen to yourself

5. Per room night: a hotel in Dubai

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional 200-room hotel in Dubai sells rooms at an average daily rate (ADR) of AED 600, and on average 75 percent of rooms are occupied. Cleaning, laundry, amenities and booking commission cost AED 120 per occupied room night. What are RevPAR (revenue per available room), room revenue in a 30-day month, and the monthly contribution from rooms?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

RevPAR = occupancy x ADR
- Room revenue = RevPAR x rooms x days
- Contribution = occupied room nights x (ADR minus variable cost)

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: RevPAR
What a strong candidate does: ADR times occupancy.
RevPAR (AED): 600 × 0.75 = 450
Step 2: Monthly room revenue
What a strong candidate does: RevPAR times 200 rooms times 30 days.
Monthly room revenue (AED): 450 × 200 × 30 = 2,700,000
Step 3: Occupied room nights
What a strong candidate does: 200 rooms, 75 percent full, 30 days.
Occupied room nights per month: 200 × 0.75 × 30 = 4,500
Step 4: Contribution
What a strong candidate does: Each occupied night contributes AED 600 minus AED 120.
Monthly contribution from rooms (AED): (600 - 120) × 4,500 = 2,160,000

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The hotel should manage its rooms business on RevPAR, now AED 450, because it combines the AED 600 rate and 75 percent occupancy in one number. First, rooms bring about AED 2.7 million of revenue and AED 2.16 million of contribution a month, since each of the 4,500 occupied nights costs only AED 120. Second, most other hotel costs are fixed, which means every extra occupied night adds about AED 480 to profit. The risk is chasing occupancy with discounts that cut the rate more than they add nights. As a next step, compare occupancy and rate with nearby competitors.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.