Deck 4: Lodging

Question 1

The Hilton and Sheraton brands did not begin franchising until the:

A)1980s
B)1960s
C)1970s
D)1950s

Answer 1

B

Question 2

The management contract typically allows for a hotel company to manage a property for:

A)2-3 years
B)5, 10, or 20 years
C)perpetuity
D)as long as profits remain at a negotiated level

Answer 2

B

Question 3

Franchising hotels began in 1907 by:

A)Howard Johnson
B)Holiday Inn
C)Ritz-Carlton
D)Hyatt

Answer 3

C

Question 4

Two major challenges of lodging franchising are avoiding financial failure by the franchisee and:

A)decreased use of central reservation systems by guests due to increased availability of internet booking options
B)up-front fees are too high for potential franchisees
C)slow growth in the industry
D)maintaining quality standards

Question 5

Motel 6 got its name from:

A)the first hotel had only six rooms
B)the owner had six children
C)the original cost of a room was $6
D)the first hotel was on Route 6

Question 6

The average franchise fees range from ________ percent of room revenue.

A)6 - 8
B)3 - 4
C)14 - 16
D)10 - 12

Question 7

Who, due to a disappointing experience while traveling with family, developed the worlds largest lodging enterprise?

A)Bill Marriott
B)Kemmons Wilson
C)Caesar Ritz
D)Howard Johnson

Question 8

Hotels may be classified by a number of factors including location, price, and:

A)types of service provided
B)types of meeting rooms available
C)number of full-service restaurants
D)number of rooms

Question 9

Marriott builds a hotel for $34 million and sells it to an investment firm for $52 million. Marriott charges the investment firm 2-4% of gross revenues to operate the hotel. This type of
Transaction is known as a:

A)franchise agreement
B)management contract
C)vacation ownership
D)REIT

Question 10

Of the 60,000 properties inspected by AAA only a small percentage earn the ________ award.

A)5 - Diamond
B)4 - Star
C)3 - Star
D)Platinum

Question 11

Hotels classified by location might include:

A)city, resort, airport and freeway
B)luxury, all-suite, economy and budget
C)full-service, mid-scale, extended stay and limited service
D)spa, convention, casino and B&B

Question 12

Franchisee benefits include all of the following except:

A)a set of plans for building
B)discount franchise fees
C)national advertising
D)centralized reservation system

Question 13

Which of the following is a benefit to the franchise company?

A)Increased market share and recognition.
B)Requiring conformity to the franchise agreement.
C)The need to be careful in the selection of potential franchisees.
D)Increased costs for negotiating volume discounts for franchisees.

Question 14

Franchising is a concept that allows hotels to:

A)expand rapidly by using other people's money
B)pay a fee based on a percentage of gross revenue to the owners
C)provide tax benefits to investors
D)provide careful consideration to the location of new properties

Question 15

In this type of ownership, investors do not pay corporate income tax, however they distribute the majority of net income to shareholders and are publicly traded.

A)Vacation ownership
B)REIT
C)Management contract
D)Franchise agreement

Question 16

Two organizations that rate and classify hotels are Mobile Travel Guide and:

A)National Restaurant Association
B)American Automobile Association
C)The United Nations World Tourism Organization
D)American Hotel and Lodging Association

Question 17

Management contracts became popular in the 1970's because:

A)ownership reverted to insurance companies
B)maintaining quality standards became difficult
C)up front fees were larger compared to franchises
D)little or no up front financing or equity was required

Question 18

The majority of franchise growth is found in North America which hosts more than ________ brand extensions and franchised hotel brands.

A)180
B)120
C)150
D)100

Question 19

The largest lodging enterprise in the world is:

A)Sheraton
B)Holiday Inn
C)Marriott
D)Intercontinental Hotel Group

Question 20

Franchising trends include all of the following except:

A)new markets located close to attractions
B)ffresh looks
C)declining demand in the lodging industry
D)expansion into smaller cities and foreign markets

Question 21

Which of the following hotels has received all of the hospitality industry and consumer organization awards including the prestigious Malcolm Baldridge National Quality Award?

A)Hyatt Hotels and Resorts
B)Holiday Inns
C)Ritz-Carlton
D)Marriott

Question 22

________ differ from typical hotel properties because they offer the guest more space in
the form of a lounge or kitchenette area.

Question 23

Another step many hotels are taking to conserve resources includes replacing showerheads with low flow devices. These can save ________ gallons of water for every 5 minutes of
Shower.

A)10
B)3
C)5
D)7

Question 24

Vacation ownership:

A)is known for limited amenities on site
B)is more popular in Europe and Australia
C)has been declining in popularity
D)began in the French Alps in the 1960's and is one of the fastest growing segments of U.S. travel and tourism

Question 25

Casino hotels are different from other hotels because:

A)they have increased in popularity
B)they make more money from gaming than rooms
C)they are only located in Las Vegas and Atlantic City
D)they are family friendly

Question 26

________ hotels provide facilities to meet the needs of groups attending large meetings
and expositions.

Question 27

Hotels classified by level of service would include:

A)city, resort, airport and freeway
B)luxury, all-suite, economy and budget
C)full-service, mid-scale, extended stay and limited service
D)spa, convention, casino and B&B

Question 28

Fairmont Hotels and Resorts are leaders in the sustainable lodging movement, also known as:

A)green lodging
B)ethical responsibility
C)business Lodging movement
D)conservation lodging

Question 29

Economy or budget hotels became popular by focusing on:

A)selling beds not meals or meetings
B)offering on-site laundry service
C)providing free Wi-fi and other in-room amenities to guests
D)providing free continental breakfasts to guests

Question 30

The ________ hotel industry is beginning to reshape the U.S. economy as a significant
segment of the entertainment industry.

Question 31

The average cost of vacation ownership is about:

A)$17,500
B)$12,500
C)$20,000
D)$15,000

Question 32

Lighting can account for ________ to ________ percent of commercial electricity consumption

A)40: 50
B)20: 30
C)30; 40
D)10; 20

Question 33

________ properties represent 15 percent of total hotel rooms and have experienced
tremendous growth.

Question 34

As one of the fastest growing segments of the industry, ________ offers consumers the
opportunity to purchase a fully furnished accommodation in a variety of forms like
weekly intervals or on a point based system.

Question 35

Hotels classified by price would include:

A)city, resort, airport and freeway
B)luxury, all-suite, economy and budget
C)full-service, mid-scale, extended stay and limited service
D)spa, convention, casino and B&B

Question 36

The Greenbriar, Homestead, and Banff Springs Hotels provide picturesque views,
excellent service and a variety of on-premise activities. They are known as ________
hotels.

Question 37

Airport hotels:

A)are generally not full service
B)are conveniently located with a higher cost
C)range from 200- 600 rooms with full service
D)have less space for meetings

Question 38

________ are lodging facilities where the owner lives on premises or nearby and
provides memorable, attractive accommodations and breakfast.

Question 39

Hotels that provide residences as well as rooms for guests to book are known as
________.

Question 40

Due to the seasonality of resorts, one of the many challenges faced by managers is:

A)providing a variety of activities for all guests
B)competing with local hotels for guest business
C)creating interesting buffet menus for adults and children
D)attracting, training and retaining competent staff

Question 41

Describe the benefits and potential drawbacks of vacation ownership

Question 42

The convenience of parking right outside the room is representative of ________ .

Question 43

________ tourism has become one of the fastest growing segments of the lodging
industry.

Question 44

List and provide examples of the three ways in which hotels are classified.

Question 45

Explain the importance of sustainable lodging and list two steps a hotel can take to decrease their
environmental impact.

Question 46

In exploring the possibility of becoming a franchisee, list and describe five potential benefits?

Question 47

You are researching your next vacation and considering what hotels to use. Explain why you would choose
a hotel with a 5-diamond rating over a hotel with only 3-diamonds. Discuss the level of amenities, service
and opportunities for quality food.

Question 48

International tourism is increasing at a fast pace. Examine how a developing country would choose to
build a hotel specifically to attract tourism. Discuss classifications of hotels and how this hotel would draw
tourism.

Question 49

One of the more unusual hotels in the world is the ________ hotel where guests have a
space of 7 feet by 7 feet including the bed and television.

Question 50

List and describe two unusual hotels found in the world.