The document discusses different approaches to pricing hotel rooms, including the Hubbart formula approach. The Hubbart formula introduced in the 1940s suggests setting the average daily rate for a hotel room at $1 for every $1,000 spent on constructing and furnishing the room, assuming a 70% occupancy rate. For example, a 190-room hotel that cost $9.5 million to construct would price rooms at $50 per night under this approach. However, this approach does not account for inflation, other facilities/services, or the desired profit level and assumes a certain occupancy rate.