What is the primary consequence of having rooms offline during renovations?

Prepare for the ESCP Real Estate (RE) Finance Test with engaging flashcards and multiple choice questions. Each question comes with comprehensive hints and explanations. Get exam-ready today!

Having rooms offline during renovations primarily leads to lower occupancy. When a hotel or property undergoes renovations, certain rooms may be unavailable for guests, meaning that the total number of available rooms for booking decreases. This reduced availability directly impacts the occupancy rate, as fewer guests can be accommodated.

Additionally, during renovation periods, there might be disturbances such as noise or construction activity that can deter potential guests from choosing the property, further contributing to lower occupancy levels. It’s important for hospitality businesses to carefully manage renovations to minimize the impact on occupancy and overall revenue.

While the other options could potentially be influenced by renovations in different contexts, the immediate and clear outcome of having rooms offline is a direct reduction in occupancy.

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