Lodging Management - Chapters 1-4 Exam Questions with
Complete Solutions.
Geography is important to the resort, hotel population, to the residential hotel, and
businesses to the commercial hotel. (T/F) - Correct Answer True
Because hotels have large fixed costs (interest on debt payments, licenses, taxes, etc.),
they are able to break-even at very low rates of occupancy. (T/F) - Correct Answer False
Most cities in the U.S.A., New York City especially, have limited their hotels to either a
commercial or residential class; that is, commercial hotels may not accept long-term
guests. (T/F) - Correct Answer False
A hotel that sold 240 rooms last night with a total rooms revenue of $24,000 has an
average daily rate of $100.00. (T/F) - Correct Answer True (24, = 240)
Legal definition and regulations by the U.S. Bureau of the Census require properties of 500
rooms or more to be called Hotels, those of 50 rooms or less to be called Motels, and those
in between to be called Motor Inns or Motor Hotels. (T/F) - Correct Answer False
In an effort at better marketing, limited service hotels have adopted newer terminology,
including:
a) select service
b) minimal service
c) focused service
d) both a and b
e) both a and c - Correct Answer e) both a and c
The smallest degree of double occupancy would most likely be in:
a) resort hotels
b) ski chalets
c) boutiques
d) business hotels
e) family-oriented facilities - Correct Answer d) business hotels
Calculate RevPar for the following hotel. The hotel had 300 rooms available for sale last
night. The hotel sold 200 rooms and has gross rooms revenue of $36,000. Calculate
RevPar:
a) $180.00
b) $120.00
c) $18.00
d) $12.00
e) none of the above - Correct Answer b) $120.00. room sales ($) / # of rooms available
, 36, = $120
The important number of employees per quest is computed:
a) number of employees on staff / number of rooms available for sale
b) number of room available / number of rooms occupied
c) RevPar x number of rooms double occupied
d) RevPar x ADR
e) both c and d since they almost produce the same mathematical values - Correct Answer
a) number of employees on staff / number of rooms available for sale
Which of the following is NOT usually considered to be a characteristic of the hotel
industry?
a) perishability
b) fixed location - Correct Answer a) perishability
A pure management contract is almost unknown today because management companies
must put up some equity if they hope to win the management contract. (T/F) - Correct
Answer true
In order to assure quality standards, franchise contracts require the franchise buyer (the
franchisee) to hire the franchise seller (the franchisor) to manage the franchise. (T/F) -
Correct Answer false
Brand equity is the inherent value that the shopper's recognition gives to the brand. There
is equity (value) in the brand if that recognition carries a positive image. (T/F) - Correct
Answer true
Casino hotels earn most of their revenue from casino win, assigning a secondary role to
room sales, which is the primary earner of traditional hotels. (T/F) - Correct Answer true
Spas are widely available, but not profitable; hotels offer them merely as an amenity - part
of the amenity creep that competition has forced on many hotels. (T/F) - Correct Answer
false
Which lodging company does not own, nor manage, nor lease, nor franchise hotels?
a) Best Western
b) Cendant
c) Hilton
d) Inter-Continental
e) None of these, each chain does some of each - Correct Answer a) best western
Which of the following components would NOT be in a mixed-use project?
Complete Solutions.
Geography is important to the resort, hotel population, to the residential hotel, and
businesses to the commercial hotel. (T/F) - Correct Answer True
Because hotels have large fixed costs (interest on debt payments, licenses, taxes, etc.),
they are able to break-even at very low rates of occupancy. (T/F) - Correct Answer False
Most cities in the U.S.A., New York City especially, have limited their hotels to either a
commercial or residential class; that is, commercial hotels may not accept long-term
guests. (T/F) - Correct Answer False
A hotel that sold 240 rooms last night with a total rooms revenue of $24,000 has an
average daily rate of $100.00. (T/F) - Correct Answer True (24, = 240)
Legal definition and regulations by the U.S. Bureau of the Census require properties of 500
rooms or more to be called Hotels, those of 50 rooms or less to be called Motels, and those
in between to be called Motor Inns or Motor Hotels. (T/F) - Correct Answer False
In an effort at better marketing, limited service hotels have adopted newer terminology,
including:
a) select service
b) minimal service
c) focused service
d) both a and b
e) both a and c - Correct Answer e) both a and c
The smallest degree of double occupancy would most likely be in:
a) resort hotels
b) ski chalets
c) boutiques
d) business hotels
e) family-oriented facilities - Correct Answer d) business hotels
Calculate RevPar for the following hotel. The hotel had 300 rooms available for sale last
night. The hotel sold 200 rooms and has gross rooms revenue of $36,000. Calculate
RevPar:
a) $180.00
b) $120.00
c) $18.00
d) $12.00
e) none of the above - Correct Answer b) $120.00. room sales ($) / # of rooms available
, 36, = $120
The important number of employees per quest is computed:
a) number of employees on staff / number of rooms available for sale
b) number of room available / number of rooms occupied
c) RevPar x number of rooms double occupied
d) RevPar x ADR
e) both c and d since they almost produce the same mathematical values - Correct Answer
a) number of employees on staff / number of rooms available for sale
Which of the following is NOT usually considered to be a characteristic of the hotel
industry?
a) perishability
b) fixed location - Correct Answer a) perishability
A pure management contract is almost unknown today because management companies
must put up some equity if they hope to win the management contract. (T/F) - Correct
Answer true
In order to assure quality standards, franchise contracts require the franchise buyer (the
franchisee) to hire the franchise seller (the franchisor) to manage the franchise. (T/F) -
Correct Answer false
Brand equity is the inherent value that the shopper's recognition gives to the brand. There
is equity (value) in the brand if that recognition carries a positive image. (T/F) - Correct
Answer true
Casino hotels earn most of their revenue from casino win, assigning a secondary role to
room sales, which is the primary earner of traditional hotels. (T/F) - Correct Answer true
Spas are widely available, but not profitable; hotels offer them merely as an amenity - part
of the amenity creep that competition has forced on many hotels. (T/F) - Correct Answer
false
Which lodging company does not own, nor manage, nor lease, nor franchise hotels?
a) Best Western
b) Cendant
c) Hilton
d) Inter-Continental
e) None of these, each chain does some of each - Correct Answer a) best western
Which of the following components would NOT be in a mixed-use project?
