Forum Discussion
Calculate a percentage increase that doesn't exceed 100%
Hello everyone,
I am currently working on an occupancy rate up model. Here is the scenario
I have a hotel with occupancy rate of 70% and ramp up 6 months
I need to calculate the EOM occupancy rate and average occupancy rate
EOM occupancy rate = 70%/6 = 0..7/6 = 0.1167 = 11.67%
while the average rate = (previous EOM occupancy rate + current EOM occupancy rate)/2
For a 10 year plan, with the above function, the values will exceed 100% and in reality an hotel won't have 150% occupancy rate.
I need to modify the function so that when EOM occupancy rate reaches 95%, it remains there. It won't exceed 100% even the plan is 100 years. Thank you
7 Replies
- TwifooSilver ContributorBased on your formula, the EOM occupancy rate will be limited to a maximum of 16.67%, which is 100%/6.
- AKP_1Copper Contributor
Thank you for your reply. Much appreciated!
Yes however there is an provision for business analysts to change the occupancy rate as well as occupancy ramp values...
Do you have any suggestion regarding that?
- TwifooSilver ContributorWhat are the maximum values for each of those 2 assumptions? Regardless of what they are, the EOM occupancy rate will always be less than 100%.
- SergeiBaklanDiamond Contributor
- AKP_1Copper Contributor