CHIA PRACTICE FINAL EXAM QUESTIONS AND ANSWERS

Three Different Operation Types - ANSWER-Corporate, Franchise, Independent STR geographic categorization for continent & subcontinent - ANSWER-Continents: 1. Americas 2. Europe 3. Mideast/Africa 4. Asia Pacific Sub continent: 1. North America 2. South America 3. Central America 4. Caribbean What is the percentage difference of Chain vs. Independent in the U.S. - ANSWER-70 to 30 What are the major geographic categories - ANSWER--World -Continent -Sub-Continent -Country -Market -Submarket Markets - ANSWER-STR markets represent major cities; areas with a higher number of hotels and participation as well as non-metro areas. An example of a metro market is1 1) New York 2) Syracuse 3) Long Island 4) Buffalo Non-Metro Market(less populated) NY State (Ithaca) What are markets created by - ANSWER-•Markets are created based upon the number of hotels in an area and the participation. North/South/East/West, or Airport/Beach, or they may have names for suburban neighborhoods or highways - ANSWER-Submarket Revisions to Submarkets and Markets - ANSWER-1) Supply (new hotels opening) 2) Participation (new hotels submitting performance data) 3) Client feedback What two geographic categories are most important to a GM? - ANSWER-Market and Submarket Changes to how Markets and Tracts are geographically defined are made how often - ANSWER-Annually What is scale? - ANSWER-The scale category is one of the most popular ways the industry looks at different hotels.-Seven Scale categories, six for chain hotels ranging from Luxury to Economy. One Scale category for all Independent hotels. What happens when a chain is categorized in a specific scale group - ANSWER-Every hotel in that chain is in that same scale group every where in the world, country, and market. STR location categories - ANSWER-1) Urban - in large metro cities 2) Suburban - in the suburbs of the cities above 3) Airport - close to a major airport 4) Interstate - close to a major highway 5) Resort - primarily leisure destination hotels 6) Small Metro/Town - in smaller metro areas Non-geographic categories - ANSWER-Non-geographic Categories→ 1) Scale 2) Class 3) Location 4) Extended Stay 5) Boutique 6) Destination Resort 7) Additional Hotel Types 8) Hotel Ratings COMP SETS ARE USED FOR MANY PURPOSES IN HOTEL OPERATIONS - ANSWER- What are the 4P'S considerations when creating a comp set? - ANSWER-Proximity, Pricing, Product, and Participation Who can create a competitive set - ANSWER-Joint effort by many stakeholders Average number of hotels in a comp set - ANSWER-5 and 6 Reverse Comp Set - ANSWER-Properties that name you in their competitive set A single hotel may be added to a competitive set if it has been open less than six month. - ANSWER-True How Does STR Obtain Raw Data? - ANSWER-Most raw property sales data is directly exported from the systems of hotel companies. Companies send STR a raw data file each month, week, and/or day. Some hotels and smaller companies enter the data on the STR web site. How is occupancy related to supply and demand? - ANSWER-If supply remains the same, and demand goes up. Occupancy increases. If demand remains the same and supply goes down. Occupancy decreases. IF SUPPLY AND DEMAND GO UP THEN YOU WILL NEED TO DO SOME MATH. IF SUPPLY OR DEMAND INCREASED AT A HIGHER RATE. Sufficiency - ANSWER-Whether or not enough of the hotels in the competitive set have participated (submitted data) for a single time period. Specific Rule for sufficiency - ANSWER-Comp set data for a single month or day, there must be at least 3 or more hotels in the comp set that submit data for that specific month or day in order for that comp set data to be "sufficient". You could have 10 hotels in the comp set, but if only 3 submit data for a month, the data for that month would be "sufficient". When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was $90. What can you tell! - ANSWER-Your ADR was $10 higher than the average of all of the members of the competitive set When you receive your STAR report your ADR index was 110 and your Occupancy index was 95? What do you know - ANSWER-Take the average and it should be around 100 Supply of rooms changes due to - ANSWER-1) New hotels opening 2) Hotels closing 3) Room additions 4) Room drops Hotel must close completely due to renovation in order to be considered a Close and Reopen. - ANSWER-One months or longer minimum number of reporting hotels for an industry segment to be considered "sufficient" - ANSWER-4 Hotels and hotel companies outside the U.S. may receive STAR reports in what currency - ANSWER-U.S. Dollars only Modeled data is used - ANSWER-In the United States How are exchange rates handled when it comes to multiple time periods, e.g. YTD, Running 3 month or Running 12 month - ANSWER-The exchange rate for each individual month is used Class - ANSWER-is a non-geographic category shown on the STAR report Weekly STAR reports are generated - ANSWER-Tuesday evenings and provide data for the prior week, Sunday through Saturday What is a weekly segmentation page? - ANSWER-Weekly STAR reports for North American hotels can include segmentation pages. Segmentation version shows current week and three different types of data. A Weekly Segmentation at a Glance page summarizes the daily metrics by Group, Transient, and Contract. There is an Additional Revenue page that displays Revenue Per Available Room for Rooms, Food & Beverage, Other Revenue, and Total Revenue. The format is the same as the Analysis pages. Weekly Performance At A Glance" tab on the Weekly STAR report displays what information - ANSWER--Detail daily data for every day of the prior week -Running 28-day data to compare each separate day and current week historic performance. The "Perspectives" pages of the Weekly STAR report show what information - ANSWER-A recap of daily data performance for the last 28 days, including index numbers, percent changes, and ranking. KPIS for the last 12 weeks for the property, comp set, and industry segment. Subtotals: Current Week, MTD, Running 28 day. TAB 7: Daily Data for the Month" tab on the Weekly STAR report displays - ANSWER-Provides a running MTD total based upon daily data Shows KPIs for the subject property and the competitive set for each day of the prior month Display