Question 1

An ownership entity hold the title to the land and the hotel after it has been built?

Accepted Answer

An ownership entity typically holds the title to both the land and the hotel after construction, as they own the property and its improvements.

Question 2

According to the author, it only takes one year for a hotel to go from the original conception phase to welcoming its first guest?

Accepted Answer

The time it takes for a hotel to go from conception to opening can vary greatly depending on factors such as location, size, and complexity of the project, and it often takes more than one year.

Question 3

The classification, signage and identification, includes items that are required by the incoming brand's standards, but do not currently meet the new standards?

Accepted Answer

False

Question 4

From a planning standpoint, the ideal lead time for a conversion is 12 weeks?

Accepted Answer

The ideal lead time for a conversion can vary depending on the specific project, industry, and requirements. There is no universally ideal lead time of 12 weeks.

Question 5

According to the author, a developer of a hotel is an entrepreneur and risk taker?

Accepted Answer

The author likely views a hotel developer as an entrepreneur and risk taker because developing a hotel involves significant investment and uncertainty, which are characteristic of entrepreneurial ventures.

Question 6

A hotel General Contractor is most often selected to build the hotel based upon:

Accepted Answer

The answer of A hotel General Contractor is most often...

Question 7

Which of the following are not part of the top entities involved in a hotel's operation?

Accepted Answer

The answer of Which of the following are not part...

Question 8

Lending Institutions are most comfortable offering construction loans when the:

Accepted Answer

Lending institutions prefer construction loans with personal guarantees, low loan-to-value ratios, experienced developers, and franchise affiliations, as these factors reduce risk.

Question 9

The following are all commonly used business structures except a:

Accepted Answer

An Investment Club is not a business structure; it is a group of individuals who pool their money to invest together.

Question 10

After the developer selects an appropriate location to build the hotel, a feasibility study is often conducted to obtain an analysis of the site by an objective third party?

Accepted Answer

A feasibility study is typically conducted by an independent third party to provide an unbiased analysis of the potential success and challenges of building a hotel at a selected location.

Question 11

Costs to be considered in preparing a Construction budget include all but one of the following:

Accepted Answer

Incentives to the local building inspectors are unethical and illegal, and should not be considered in a construction budget.

Question 12

From a legal standpoint, a hotel company cannot use a former flag's registration card to check in guests at the new brand's hotel?

Accepted Answer

Using a former flag's registration card could violate trademark and branding agreements, as it may mislead guests about the hotel's current brand affiliation.

Question 13

The classification, _______________, includes items that have the existing brand's name or logo on existing items, which must be replaced on the day of the name change.

Accepted Answer

Signage and identification involve items that display the brand's name or logo, which need updating when a brand undergoes a name change.

Question 14

Preparing a hotel to carry a new brand is called a flag in the industry?

Accepted Answer

In the hotel industry, "flag" refers to the brand or franchise under which a hotel operates.

Question 15

The classification, computer information systems, includes all costs for hardware, software, cabling installation, and training associated with converting the new brand's information systems requirements?

Accepted Answer

Computer information systems include all costs associated with converting the new brand's information systems requirements, including hardware, software, cabling installation, and training.

Question 16

A hotel ownership entity often enters into an agreement to finance and build the hotel using a:

Accepted Answer

A Development and Construction Management Agreement is a contract between a hotel ownership entity and a developer/contractor to finance and build the hotel.

Question 17

The Ownership Entity, The Developer, and The Management Company must all be different companies with different people, each operating on an "arm's length" basis?

Accepted Answer

In some cases, the Ownership Entity, Developer, and Management Company can be the same company or have overlapping personnel, depending on the structure and agreements of the project.

Question 18

The process by which hotel management and franchise companies protect their brand names is referred as brand integrity?

Accepted Answer

Brand integrity refers to the process by which hotel management and franchise companies protect their brand names and ensure that their products and services meet the standards and expectations associated with the brand.

Question 19

Typically, all goods necessary for reflagging are delivered in the late afternoon on the day prior to the flag change?

Accepted Answer

Typically, all goods necessary for reflagging are delivered in the late afternoon on the day prior to the flag change.

Question 20

In general, the higher a hotel owner pays for the land where the hotel will be built, the lower the owner is able to charge for a room?

Accepted Answer

Higher land costs typically lead to higher room rates to cover expenses and maintain profitability.

Quiz 1: Overview