Question 1

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

Accepted Answer

A)   real estate investment trusts
B)   management contracts
C)   referral associations
D)   franchisingE) A) and B)
F) A) and C)

Question 2

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

Accepted Answer

A)   Investment Partnership
B)   management contract
C)   REIT
D)   franchisingE) A) and B)
F) B) and D)

Question 3

Examples of hotel level of service classification include

Accepted Answer

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, freewayE) None of the above
F) A) and D)

Question 4

Airport hotels

Accepted Answer

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 hotelsE) A) and D)
F) A) and B)

Question 5

List five factors involved in the growth of franchising.

Accepted Answer

Fresh look -curb appeal Location -near h...

Question 6

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.

Accepted Answer

A)   Partnerships
B)   Real estate investment trusts
C)   Franchises
D)   Independent ownershipE) A) and D)
F) C) and D) B

Question 7

Hotels may be classified by

Accepted Answer

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

Question 8

Mixed use hotel development indicates that a hotel

Accepted Answer

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

Question 9

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

Accepted Answer

A)   vacation brokers
B)   management companies
C)   leasing companies
D)   franchiseesE) B) and C)
F) A) and C)

Question 10

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

Accepted Answer

A)   franchising
B)   referral companies
C)   management companies
D)   real estate investment trustsE) A) and B)
F) None of the above

Question 11

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

Accepted Answer

A)   trends
B)   drawbacks
C)   benefits
D)   bonusesE) A) and B)
F) B) and C)

Question 12

The fastest growing segment of the travel industry is

Accepted Answer

A)   resort hotels
B)   vacation ownership
C)   city center hotels
D)   cruise shipsE) None of the above
F) A) and C)

Question 13

Examples of hotel price classification include

Accepted Answer

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 serviceE) C) and D)
F) A) and B)

Question 14

The benefits of franchising include all of the following EXCEPT:

Accepted Answer

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 buildingE) A) and B)
F) A) and C) A

Question 15

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.

Accepted Answer

The student may discuss the cost of buil...

Question 16

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

Accepted Answer

A)   capacity control
B)   consolidation
C)   safety and security
D)   diversificationE) C) and D)
F) All of the above

Question 17

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.

Accepted Answer

The text lists the classifications of ho...

Question 18

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

Accepted Answer

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

Question 19

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.

Accepted Answer

By Student answers should reflect the va...

Question 20

Examples of hotel location include

Accepted Answer

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 breakfastE) None of the above
F) All of the above

Exam 2: The Hotel Business

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Examples of hotel level of service classification include

Correct AnswerverifiedShow Answer

Airport hotels

Correct AnswerverifiedShow Answer

List five factors involved in the growth of franchising.

Correct AnswerverifiedFresh look -curb appeal Location -near h...View AnswerShow Answer

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.

Correct AnswerverifiedB

Hotels may be classified by

Correct AnswerverifiedShow Answer

Mixed use hotel development indicates that a hotel

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The fastest growing segment of the travel industry is

Correct AnswerverifiedShow Answer

Examples of hotel price classification include

Correct AnswerverifiedShow Answer

The benefits of franchising include all of the following EXCEPT:

Correct AnswerverifiedA

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.

Correct AnswerverifiedThe student may discuss the cost of buil...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedThe text lists the classifications of ho...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedBy Student answers should reflect the va...View AnswerShow Answer

Examples of hotel location include

Correct AnswerverifiedShow Answer

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Fresh look -curb appeal Location -near h...
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B

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C

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A

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The student may discuss the cost of buil...
View Answer

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The text lists the classifications of ho...
View Answer

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By Student answers should reflect the va...
View Answer

Correct Answer
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