HTM EXAM #1 (CHAPTERS 1-4)
QUESTIONS AND ANSWERS 2026 UPDATE
WITH COMPLETE SOLUTION ALREADY
GRADED A+
The benefits of franchising include all of the following EXCEPT: -
ANSWERS-high fee percentages charged by credit card companies
Examples of hotel level of service classification include - ANSWERS-
full service, mid-scale, extended stay, limited service
Examples of hotel price classification include - ANSWERS-luxury, all
suites, economy, budget
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 - ANSWERS-Real estate investment trusts
In franchising the franchisee is granted rights to - ANSWERS-use
trademarks, operating procedures and other business procedures
Hotels may be classified by - ANSWERS-Location, price and service
,In order to determine if a hotel development project would likely
succeed, we would perform a(n) - ANSWERS-feasibility study
Hotels and motels that are part of a ________ share a centralized
reservation system and a common image, logo or advertising slogan -
ANSWERS-referral association
Franchising fees vary according to the agreements between
franchisee and franchisor but the usual fees are between _____ of room
revenue. - ANSWERS-3 and 4%
Airport hotels - ANSWERS-range from 200-600 rooms with full service
Franchising is - ANSWERS-used in the hospitality industry to rapidly
expand business
a concept that allows a company to use other peoples money for
growth rather than financing
What is not a characteristic of a hotel airport? - ANSWERS-Budget
focus
All of the following are benefits of a city center hotel EXCEPT -
ANSWERS-room prices are usually in the luxury segment
Franchising hotels was begun in 1907 by - ANSWERS-The Ritz
Company
, City center, resort, airport and freeway are all examples of hotels
being classified by - ANSWERS-location
The fastest growing segment of the travel industry is - ANSWERS-
vacation ownership
As the hotel industry matures, corporations are either acquiring or
merging with each other. This is - ANSWERS-consolidation
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 -
ANSWERS-management contract
The Greenbrier, the Halekulani and the Ritz Carlton Kapalua are all
examples of - ANSWERS-resorts
Mixed-use hotel development indicates that - ANSWERS-a hotel may
also have residences
Casino hotels - ANSWERS-are marketing themselves as business
hotels
An organization that rates and classifies hotels and awards them
Diamonds is the - ANSWERS-American Automobile Association
QUESTIONS AND ANSWERS 2026 UPDATE
WITH COMPLETE SOLUTION ALREADY
GRADED A+
The benefits of franchising include all of the following EXCEPT: -
ANSWERS-high fee percentages charged by credit card companies
Examples of hotel level of service classification include - ANSWERS-
full service, mid-scale, extended stay, limited service
Examples of hotel price classification include - ANSWERS-luxury, all
suites, economy, budget
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 - ANSWERS-Real estate investment trusts
In franchising the franchisee is granted rights to - ANSWERS-use
trademarks, operating procedures and other business procedures
Hotels may be classified by - ANSWERS-Location, price and service
,In order to determine if a hotel development project would likely
succeed, we would perform a(n) - ANSWERS-feasibility study
Hotels and motels that are part of a ________ share a centralized
reservation system and a common image, logo or advertising slogan -
ANSWERS-referral association
Franchising fees vary according to the agreements between
franchisee and franchisor but the usual fees are between _____ of room
revenue. - ANSWERS-3 and 4%
Airport hotels - ANSWERS-range from 200-600 rooms with full service
Franchising is - ANSWERS-used in the hospitality industry to rapidly
expand business
a concept that allows a company to use other peoples money for
growth rather than financing
What is not a characteristic of a hotel airport? - ANSWERS-Budget
focus
All of the following are benefits of a city center hotel EXCEPT -
ANSWERS-room prices are usually in the luxury segment
Franchising hotels was begun in 1907 by - ANSWERS-The Ritz
Company
, City center, resort, airport and freeway are all examples of hotels
being classified by - ANSWERS-location
The fastest growing segment of the travel industry is - ANSWERS-
vacation ownership
As the hotel industry matures, corporations are either acquiring or
merging with each other. This is - ANSWERS-consolidation
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 -
ANSWERS-management contract
The Greenbrier, the Halekulani and the Ritz Carlton Kapalua are all
examples of - ANSWERS-resorts
Mixed-use hotel development indicates that - ANSWERS-a hotel may
also have residences
Casino hotels - ANSWERS-are marketing themselves as business
hotels
An organization that rates and classifies hotels and awards them
Diamonds is the - ANSWERS-American Automobile Association
