Deck 2: The Hotel Business

Question 1

An organization that rates and classifies hotels and awards them Diamonds is the

A)Exxon Excellence Association
B)American Automobile Association
C)United States Automobile Club
D)American Hotel & Motel Association

Answer 1

B

Question 2

Hotels and motels that are part of a ________ share a centralized reservation system and a common image,logo or advertising slogan.

A)proprietorship
B)referral association
C)franchise
D)REIT

Answer 2

B

Question 3

The lack of operational power,high fees,low percentage of reservations from the central reservation system are all ________ of franchising.

A)bonuses
B)trends
C)benefits
D)drawbacks

Answer 3

D

Question 4

The primary growth and development strategy of hotels during the 1960's was

A)referral associations
B)franchising
C)real estate investment trusts
D)management contracts

Question 5

Casino hotels

A)make more money from gaming than from rooms
B)are marketing themselves as business hotels
C)are focusing more on the budget traveler
D)are becoming more family friendly

Question 6

Franchising fees vary according to the agreements between franchisee and franchisor but the usual fees are between ________ of room revenue

A)4 and 5%
B)5 and 6%
C)2 and 3%
D)3 and 4%

Question 7

Airport hotels

A)face less competition than other types of hotels
B)range from 200 ^-600 rooms with full service
C)are generally not full service
D)are often smaller,budget hotels

Question 8

Examples of hotel level of service classification include

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

Question 9

The benefits of franchising include all of the following EXCEPT:

A)set of plans and specifications for building
B)participating in the volume purchasing discounts
C)national advertising
D)high fee percentages charged by credit card companies

Question 10

Corporations that operate a hotel without capital outlay in exchange for a percentage of gross sales are known as

A)leasing companies
B)vacation brokers
C)franchisees
D)management companies

Question 11

Hotel companies are increasingly opting for ________ because considerably less capital is tied up in managing as compared to ownership.

A)management companies
B)franchising
C)real estate investment trusts
D)referral companies

Question 12

In order to determine if a hotel development project would likely succeed,we would perform a

A)trust initiative
B)operating assessment
C)feasibility study
D)property appraisal

Question 13

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)Partnerships
B)Franchises
C)Real estate investment trusts
D)Independent ownership

Question 14

Purchasing the right to use a company's trademark and copyrighted materials is known as

A)leasing
B)a partnership
C)franchising
D)syndication

Question 15

Examples of hotel location include

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

Question 16

Hotels may be classified by

A)size
B)country
C)type of recreational facilities
D)Location,price and service

Question 17

The following are characteristics of airport hotels EXCEPT:

A)200 ^-600 rooms
B)budget focused
C)full service
D)airport shuttle service

Question 18

Examples of hotel price classification include

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

Question 19

In franchising,the franchisee is granted rights to

A)change the name of the business
B)full ownership of the land
C)use trademarks,operating procedures and other business procedures
D)full ownership of the building

Question 20

Marriott builds a hotel for $34 million and sells it to a banking firm for $52 million.Marriott charges the banking firm 2 ^-4 % of gross revenues to operate the hotel.This business transaction is known as

A)management contract
B)Investment Partnership
C)REIT
D)franchising

Question 21

Discuss marketability of the sustainable hotel industry.Discuss costs versus a standard hotel,guest demographic,and the positive or negative impact in the local community.

Question 22

Mixed use hotel development indicates that a hotel

A)is near transportation
B)can be used for meetings and lodging
C)serves food
D)may also have residences

Question 23

Hotels that are typically furnished,have a well ^-stocked kitchen,and cater to guests staying for longer periods of time are

A)extended ^-stay hotels
B)convention hotels
C)full service hotels
D)boutique hotels

Question 24

List the six main types of hotels by price segment and give two examples of each.Outline a general profile of the typical customer for each segment.

Question 25

You own a three star hotel in an upscale area of town and find it necessary to upgrade to four ^-star to be competitive in your market.List and describe how you intend to accomplish the upgrade.

Question 26

Hotels that are a cross between a chain and a marketing group for independent hotels are classified as

A)quasi ^-chain
B)independent hotels
C)corporate hotels
D)chain hotels

Question 27

List five factors involved in the growth of franchising.

Question 28

The fastest growing segment of the travel industry is

A)cruise ships
B)resort hotels
C)city center hotels
D)vacation ownership

Question 29

List three popular forms of ownership used in the lodging industry that allow for rapid expansion.

Question 30

As the hotel industry matures,corporations are either acquiring or merging with each other.This is

A)diversification
B)safety and security
C)consolidation
D)capacity control

Question 31

City center,resort,airport and freeway are all examples of hotels being classified by

A)location
B)amenities
C)service
D)price

Question 32

Compare and contrast the following concepts: franchise,partnership,leasing and syndication.

Question 33

Of the ten hotel classifications,select five and give a general description of the types of hotels in each segment.Be sure to include price,location,and degree of service and target market.