EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⫸ What does a chain represent? Answer: The hotel brand which is
clearly displayed to the public on the building and in all interactions
with the customer.
⫸ There are __ chains in the US with 50,000 rooms or more and __
chains in the world with 75,000 rooms or more Answer: 22; 24
⫸ Most people agree that _______ was the first chain. Answer: Holiday
Inn
⫸ Parent Companies Answer: Consist of multiple chains; often the
parent company will havea variety of different types of chains
⫸ T/F A parent company may have a range of high-end, middle, and
low-end chains; or they may concentrate in one area Answer: True
⫸ What is the top parent company in the US? Answer: Hilton
Worldwide
,⫸ Corporate hotel Answer: A chain hotel owned or managed by the
chain or the parent company
⫸ Franchise hotel Answer: A chain hotel run by a 3rd party where the
chain receives some sort of franchise fee
⫸ Independent hotel Answer: Not affiliated with a chain or parent
company
⫸ Of the 3 basic types of hotel operations (corporate, franchise, and
independent), which one has the most US properties? Which one has the
least? Answer: Most=Franchise
Least=Corporate
⫸ Of the 3 basic types of hotel operations (corporate, franchise, and
independent), which one has the most worldwide properties? Which one
has the least? Answer: Most=Independent
Least=Corporate
⫸ What is the ratio of chain hotels vs. independent hotels in the US?
Answer: 70% are chain; 30% are independent
⫸ What is the ratio of chain hotels vs. independent hotels worldwide?
Answer: 40% are chain; 60% are independent
,⫸ Management company Answer: Operates a hotel for another party;
the company has a management contract where it receives
payment/some portion of profits
⫸ T/F Some chains or parent companies manage their own hotels
Answer: True
⫸ Owner companies Answer: There are many companies that own
multiple hotels
⫸ Asset management company Answer: Represents the owner in the
operation of a hotel
⫸ T/F A hotel cannot have both a management company and an asset
management company Answer: False. They can.
⫸ T/F The Holiday Inn and Holiday Inn Express are 2 different chains
Answer: True
⫸ What are the 3 classifications of operation types? Answer: 1.
Corporate
2. Franchise
3. Independent
, ⫸ T/F There is a very strong trend for US hotels to expand
internationally because the opportunity for large US chains is there
Answer: True
⫸ Describe the average independent hotel in the US Answer: Classified
as Economy, Located in a Suburban area, and has 25 rooms or less
⫸ Most of the entities below are classified as chains. Which one is a
parent company consisting of multiple chains?
A. Hampton Inn
B. Motel 6
C. Choice
D. Holiday Inn Express Answer: C. Choice
⫸ Which is a true statement about parent companies?
A. They and their related chains have changed over time
B. They must consist of no more than 5 chains.
C. They can only consist of chains in a single Scale.
D. They can only have hotels in a single country. Answer: A. They and
their related chains have changed over time
⫸ Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain.
B. Chain hotels outnumber independent hotels in every country of the
world.