Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
Lighting can account for ________ to ________ percent of commercial electricity consumption
1)
A)
30; 40
B)
40: 50
C)
20: 30
D)
10; 20
Answer:
Explanation:
A)
B)
C)
D)
2)
Hotels classified by level of service would include:
2)
A)
city, resort, airport and freeway
B)
luxury, all–suite, economy and budget
C)
full–service, mid–scale, extended stay and limited service
D)
spa, convention, casino and B&B
Answer:
Explanation:
A)
B)
C)
D)
3)
Which of the following is a benefit to the franchise company?
3)
A)
Increased market share and recognition.
B)
The need to be careful in the selection of potential franchisees.
C)
Increased costs for negotiating volume discounts for franchisees.
D)
Requiring conformity to the franchise agreement.
Answer:
Explanation:
A)
B)
C)
D)
4)
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.
4)
A)
Vacation ownership
B)
Franchise agreement
C)
Management contract
D)
REIT
Answer:
Explanation:
A)
B)
C)
D)
1
5)
Motel 6 got its name from:
5)
A)
the first hotel had only six rooms
B)
the owner had six children
C)
the first hotel was on Route 6
D)
the original cost of a room was $6
Answer:
Explanation:
A)
B)
C)
D)
6)
Marriott builds a hotel for $34 million and sells it to an investment firm for $52 million. Marriott
charges the investment firm 2–4% of gross revenues to operate the hotel. This type of transaction is
known as a:
6)
A)
management contract
B)
REIT
C)
franchise agreement
D)
vacation ownership
Answer:
Explanation:
A)
B)
C)
D)
7)
The average franchise fees range from ________ percent of room revenue.
7)
A)
14 – 16
B)
3 – 4
C)
10 – 12
D)
6 – 8
Answer:
Explanation:
A)
B)
C)
D)
8)
Two organizations that rate and classify hotels are Mobile Travel Guide and:
8)
A)
The United Nations World Tourism Organization
B)
National Restaurant Association
C)
American Automobile Association
D)
American Hotel and Lodging Association
Answer:
Explanation:
A)
B)
C)
D)
9)
Which of the following hotels has received all of the hospitality industry and consumer
organization awards including the prestigious Malcolm Baldridge National Quality Award?
9)
A)
Hyatt Hotels and Resorts
B)
Marriott
C)
Holiday Inns
D)
Ritz–Carlton
Answer:
Explanation:
A)
B)
C)
D)
2
10)
Franchising is a concept that allows hotels to:
10)
A)
pay a fee based on a percentage of gross revenue to the owners
B)
expand rapidly by using other people’s money
C)
provide careful consideration to the location of new properties
D)
provide tax benefits to investors
Answer:
Explanation:
A)
B)
C)
D)
11)
Franchising trends include all of the following except:
11)
A)
new markets located close to attractions
B)
declining demand in the lodging industry
C)
ffresh looks
D)
expansion into smaller cities and foreign markets
Answer:
Explanation:
A)
B)
C)
D)
12)
The average cost of vacation ownership is about:
12)
A)
$20,000
B)
$12,500
C)
$15,000
D)
$17,500
Answer:
Explanation:
A)
B)
C)
D)
13)
Hotels classified by location might include:
13)
A)
city, resort, airport and freeway
B)
luxury, all–suite, economy and budget
C)
full–service, mid–scale, extended stay and limited service
D)
spa, convention, casino and B&B
Answer:
Explanation:
A)
B)
C)
D)
14)
The management contract typically allows for a hotel company to manage a property for:
14)
A)
2–3 years
B)
5, 10, or 20 years
C)
as long as profits remain at a negotiated level
D)
perpetuity
Answer:
Explanation:
A)
B)
C)
D)
3
15)
Who, due to a disappointing experience while traveling with family, developed the worlds largest
lodging enterprise?
15)
A)
Caesar Ritz
B)
Kemmons Wilson
C)
Bill Marriott
D)
Howard Johnson
Answer:
Explanation:
A)
B)
C)
D)
16)
Franchisee benefits include all of the following except:
16)
A)
centralized reservation system
B)
a set of plans for building
C)
national advertising
D)
discount franchise fees
Answer:
Explanation:
A)
B)
C)
D)
17)
Of the 60,000 properties inspected by AAA only a small percentage earn the ________ award.
17)
A)
5 – Diamond
B)
Platinum
C)
3 – Star
D)
4 – Star
Answer:
Explanation:
A)
B)
C)
D)
18)
Airport hotels:
18)
A)
have less space for meetings
B)
are generally not full service
C)
are conveniently located with a higher cost
D)
range from 200– 600 rooms with full service
Answer:
Explanation:
A)
B)
C)
D)
19)
Another step many hotels are taking to conserve resources includes replacing showerheads with
low flow devices. These can save ________ gallons of water for every 5 minutes of shower.
19)
A)
5
B)
7
C)
3
D)
10
Answer:
Explanation:
A)
B)
C)
D)
4
20)
Hotels may be classified by a number of factors including location, price, and:
20)
A)
number of full–service restaurants
B)
types of service provided
C)
number of rooms
D)
types of meeting rooms available
Answer:
Explanation:
A)
B)
C)
D)
21)
Vacation ownership:
21)
A)
is more popular in Europe and Australia
B)
began in the French Alps in the 1960’s and is one of the fastest growing segments of U.S.
travel and tourism
C)
is known for limited amenities on site
D)
has been declining in popularity
Answer:
Explanation:
A)
B)
C)
D)
22)
Franchising hotels began in 1907 by:
22)
A)
Hyatt
B)
Ritz–Carlton
C)
Howard Johnson
D)
Holiday Inn
Answer:
Explanation:
A)
B)
C)
D)
23)
Two major challenges of lodging franchising are avoiding financial failure by the franchisee and:
23)
A)
up–front fees are too high for potential franchisees
B)
maintaining quality standards
C)
decreased use of central reservation systems by guests due to increased availability of internet
booking options
D)
slow growth in the industry
Answer:
Explanation:
A)
B)
C)
D)
24)
The majority of franchise growth is found in North America which hosts more than ________ brand
extensions and franchised hotel brands.
24)
A)
120
B)
180
C)
150
D)
100
Answer:
Explanation:
A)
B)
C)
D)
5
25)
The largest lodging enterprise in the world is:
25)
A)
Holiday Inn
B)
Sheraton
C)
Marriott
D)
Intercontinental Hotel Group
Answer:
Explanation:
A)
B)
C)
D)
26)
Casino hotels are different from other hotels because:
26)
A)
they are only located in Las Vegas and Atlantic City
B)
they are family friendly
C)
they make more money from gaming than rooms
D)
they have increased in popularity
Answer:
Explanation:
A)
B)
C)
D)
27)
The Hilton and Sheraton brands did not begin franchising until the:
27)
A)
1950s
B)
1980s
C)
1960s
D)
1970s
Answer:
Explanation:
A)
B)
C)
D)
28)
Due to the seasonality of resorts, one of the many challenges faced by managers is:
28)
A)
providing a variety of activities for all guests
B)
attracting, training and retaining competent staff
C)
creating interesting buffet menus for adults and children
D)
competing with local hotels for guest business
Answer:
Explanation:
A)
B)
C)
D)
29)
Hotels classified by price would include:
29)
A)
city, resort, airport and freeway
B)
luxury, all–suite, economy and budget
C)
full–service, mid–scale, extended stay and limited service
D)
spa, convention, casino and B&B
Answer:
Explanation:
A)
B)
C)
D)
6