Deck 2: The Hotel Business

Question 1

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

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

Answer 1

A

Question 2

The following are characteristics of airport hotels EXCEPT:

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

Answer 2

B

Question 3

Examples of hotel level of service classification include

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

Answer 3

A

Question 4

Airport hotels

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

Question 5

Hotels may be classified by

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

Question 6

Examples of hotel location include

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

Question 7

Examples of hotel price classification include

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

Question 8

Casino hotels

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

Question 9

In franchising, the franchisee is granted rights to

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

Question 10

The benefits of franchising include all of the following EXCEPT:

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

Question 11

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

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

Question 12

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

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

Question 13

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

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

Question 14

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

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

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

Question 16

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

Question 17

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

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

Question 18

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

Question 19

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

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

Question 20

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

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

Question 21

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

Question 22

List five factors involved in the growth of franchising.

Question 23

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

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

Question 24

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

Question 25

The fastest growing segment of the travel industry is

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

Question 26

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 27

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

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

Question 28

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

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

Question 29

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

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

Question 30

Mixed use hotel development indicates that a hotel

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

Question 31

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 32

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 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.