![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjisqUKVJFJ0R5bEhvl1EkJx4mpiITPmuV19v-Sfu7SValFVwARkYBJ_uXem4RW-LS-bdKGMDXYOMfiu4q9-QbGPxArGcgfKwro8vzsffiFHlpmDNV36V326K5G-fkH3CiMIGhtC45mICCD/s320/mortgage-rate.png)
There are two steps involved to calculate the
potential average rate
Step 1: Multiplying the Rate Spread by the
hotel's Multiple Occupancy Percentage.
Step 2: Add the result from Step 1 to hotel's Average
Single Rate which will then give the 'Potential Average Rate (PAR)'
The Formula for Potential Average Rate:
Potential Average Single Rate = (Multiple Occupancy
Percentage X Rate Spread) + Potential Average Single Rate
E.g. - Potential Avg. Rate:
Multiple Occupancy Percentage = 5.00
Rate Spread = 15.00
Potential Avg. Single Rate = 100.00
Potential Average Rate (PAR) = (5.00 X 15.00) + 100
=
(75) + 100
=
175
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