The Building Cost (Room) Rate:
A) Is simply a rule-of-thumb, a frequently quoted yardstick for room rates
B) Includes land improvements (landscaping, for example) as part of building costs
C) Works out to be $1 per $1,000 in construction costs
D) Translates into larger-sized rooms requiring higher room rates
E) All of the above except D

Question

Quizplus · Accepted Answer

The Building Cost (Room) Rate is indeed a rule-of-thumb used in the hospitality industry to estimate room rates based on construction and improvement costs, but it does not directly dictate that larger-sized rooms require higher room rates, as room pricing can be influenced by various factors beyond size and construction costs.