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Their are many factors involved in deciding what rates to charge in a hotel.

1. What rates are your competitors getting.

2. Is there a season (busier time) in the town.

3. Is their an event going on in town. Rates are usually raised if there is a greater demand for rooms.

4. What kind of hotel is it? New, old, clean, well kept.

5. How much money is the owner trying to make per room.

6. What ADR (average daily rate) is needed to cover expenses and morgages.

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Q: How do you decide room rates in hotel?
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