Question 1

Hotels are especially sensitive to good security because a great deal of street crime has spilled into the nation's hotels.

Accepted Answer

Hotels prioritize security due to their public accessibility and the high volume of guests, making them potential targets for crime that could spill over from nearby areas.

Question 2

The actual size of a projected hotel can be determined simply by multiplying the number of guest rooms by the square footage of each room.

Accepted Answer

Determining the actual size of a projected hotel involves more than just the guest rooms' square footage; it also includes public areas, amenities, back-of-house operations, and circulation spaces.

Question 3

One of the chief advantages of chains is incorporating: One corporation serves the entire chain, saving the necessity and cost of incorporating each hotel property individually.

Accepted Answer

The answer of One of the chief advantages of chains...

Question 4

A strong national currency, enables businesses (think hotels) of one nation to gain a foothold in the businesses of nations whose currencies are weak.

Accepted Answer

A strong national currency makes the goods and services of a nation relatively more expensive in the international market, which can make it difficult for businesses to gain a foothold in other nations.

Question 5

Success in the hotel industry reflects, in part, the status of the real estate market.

Accepted Answer

The hotel industry is closely linked to the real estate market because hotels are significant real estate assets. The value, demand, and profitability of hotels can be influenced by the overall health and trends in the real estate market, including factors like location desirability, property values, and investment flows.

Question 6

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.

Accepted Answer

The U.S. Bureau of the Census does not define hotels, motels, or motor inns/motor hotels based on the number of rooms. The classification typically depends on the services offered, location, and amenities, not strictly on room count.

Question 7

Many management contracts require the management company that's bidding to put up some equity (investment) in order to win the management contract.

Accepted Answer

In some cases, management contracts may require the management company to invest equity to align interests and ensure commitment to the project's success.

Question 8

24 /7/365 is shorthand for: 24 hours per day; 7 days per week; 365 days per year. Staying open 24/7/365 is part of the legal definition of a hotel.

Accepted Answer

The given statement correctly defines the shorthand notation "24/7/365" as representing 24 hours per day, 7 days per week, and 365 days per year.

Question 9

The food and beverage department continues to decline in importance for the whole industry because more and more hotels either eliminate their foodservice or lease the facility to another party.

Accepted Answer

The trend of hotels outsourcing or eliminating their foodservice operations has been observed, as it allows them to focus on their core hospitality services and reduce operational complexities and costs.

Question 10

The architectural "footprint"is a production standard that refers to the number of housekeeping employees needed per square foot to maintain lobby cleanliness.

Accepted Answer

The architectural "footprint" refers to the area of a building or structure that is covered by the building on the ground; it is a term related to physical dimensions and layout, not to staffing or maintenance standards.

Question 11

Hotels have eliminated many middle management positions, which flattens the organizational chart and throws more responsibility on the remaining managers and employees.

Accepted Answer

Flattening the organizational chart by eliminating middle management positions does indeed increase the responsibilities of the remaining managers and employees, as they must absorb the duties previously handled by those now-absent roles.

Question 12

The huge increase in cell-phone use has brought a corresponding revenue increase in the telephone departments, making telephone the fastest growing department percentagewise within the lodging industry.

Accepted Answer

While cell-phone use has significantly increased, it has actually led to a decrease in revenue for hotel telephone services, as guests prefer using their personal mobile phones over the in-room telephones, leading to a decline in usage and revenue from these services.

Question 13

Many hoteliers quote the famous statement, "Location, location, location,"meaning that real estate's location is a critical element of the hotel business.

Accepted Answer

The phrase "Location, location, location" is indeed commonly cited in the hotel industry and real estate as a whole, emphasizing the importance of a property's location to its success and value.

Question 14

The most popular hotel rating guides in the United States are the Mobil Guide, the Michelin Guide and the AH&LA Guide to Hotels.

Accepted Answer

The Michelin Guide does not rate hotels in the United States; it is primarily known for rating restaurants. The Mobil Guide, now known as the Forbes Travel Guide, and the American Automobile Association (AAA) are more commonly referenced for hotel ratings in the U.S. The AH&LA (American Hotel & Lodging Association) does not publish a guide for rating hotels.

Question 15

America's late 19^th Century hotels were large, splendid edifices, almost like castles, but because they were open to anyone who came, they were called, "Palaces of the people."

Accepted Answer

During the late 19th century, America saw the construction of grand hotels that were indeed referred to as "Palaces of the People" due to their opulent architecture and the democratic idea that they were accessible to the general public, not just the elite.

Question 16

A "rule of thumb"is a simple formula for converting the square footage of a guest room into the square meters of the metric system.

Accepted Answer

A "rule of thumb" refers to a general principle or guideline, not a specific formula for converting square footage to square meters.

Question 17

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.

Accepted Answer

Casino hotels primarily earn their revenue from gambling activities in the casino, with room sales and other amenities playing a secondary role in their income structure, unlike traditional hotels where room sales are the main source of revenue.

Question 18

Spas are widely available in upscale hotels, but rarely profitable: They're offer merely as a guest service.

Accepted Answer

The answer of Spas are widely available in upscale hotels,...

Question 19

The separation of powers is a good management principle so the general manager of a hotel should be hired by and report to the company that owns the hotel, not to the company that manages the hotel.

Accepted Answer

The separation of powers is a principle primarily applied in government to ensure no single entity has complete control, whereas in business, effective management often requires integration and clear lines of authority. A general manager of a hotel typically needs to report to the company that manages the hotel to ensure operational efficiency and alignment with the management company's policies and goals.

Question 20

The AH&MA has been renamed to more closely reflect the variety of industry types. It is now the AH&LA, The American Hotel & Lodging Association.

Accepted Answer

The American Hotel & Motel Association (AH&MA) was renamed to the American Hotel & Lodging Association (AH&LA) to better represent the breadth of the lodging industry, including hotels, motels, and other types of accommodations.

Quiz 15: Understanding Billing and Financial Operations in the Hospitality Industry