CERTIFIED HOSPITALITY REVENUE
MANAGEMENT EXAM 250 QUESTIONS AND
ANSWERS WITH DETAILED RATIONALES
LATEST UPDATE 2026
Section 1: Foundational KPIs & Performance Metrics (Questions 1–30)
1. Which metric measures the profit generated per available room, excluding
departmental costs like F&B, but including the cost of rooms operations?
A) RevPAR
B) GOPPAR
C) TRevPAR
D) EBITDAAR
Correct Answer: B) GOPPAR
Rationale: GOPPAR (Gross Operating Profit Per Available Room) measures the
profit after deducting departmental expenses and undistributed operating expenses
but before fixed charges. RevPAR (A) ignores costs entirely. TRevPAR (C)
measures total revenue, not profit. EBITDAAR (D) includes deductions for lease
and management fees, which GOPPAR excludes.
2. If a hotel has an Occupancy of 75% and an ADR of $200, what is its RevPAR?
A) $150
,B) $266.67
C) $200
D) $175
Correct Answer: A) $150
Rationale: RevPAR = Occupancy × ADR = 0.75 × 200 = $150. Option B
($266.67) is the inverse calculation (ADR / Occ). Option C ignores occupancy.
Option D is a random miscalculation.
3. What is the primary limitation of using RevPAR alone to measure hotel
performance?
A) It ignores seasonal fluctuations.
B) It does not account for variable distribution costs or total revenue generation.
C) It is only applicable to luxury properties.
D) It overvalues group business.
Correct Answer: B) It does not account for variable distribution costs or total
revenue generation.
Rationale: RevPAR is a volume-based metric (rooms revenue / available rooms). It
fails to capture total revenue (F&B, spa) or the cost of acquiring that revenue (e.g.,
high OTA commissions). Option A is false as RevPAR does reflect seasonality. C
and D are factually incorrect.
4. Which metric is most effective for comparing the operational efficiency of two
hotels with different total revenue structures?
A) ADR
B) Occupancy %
C) RevPAR
,D) GOPPAR
Correct Answer: D) GOPPAR
Rationale: GOPPAR is profit-based, allowing for a true efficiency comparison
regardless of size or revenue mix. ADR and Occupancy (A, B) are volume-only
measures. RevPAR (C) ignores costs, so a hotel with high RevPAR but high OPEX
might be less efficient.
5. The "Penetration Index" (PI) compares a hotel's performance against:
A) Its historical performance.
B) Its competitive set's average.
C) The market's average ADR.
D) Its budgeted forecast.
Correct Answer: B) Its competitive set's average.
Rationale: The Penetration Index (also called MPI for occupancy, ARI for ADR,
and RGI for RevPAR) specifically measures the hotel's share of the competitive
set's total performance. Option A is year-over-year growth; C is general market
(broader than comp set); D is budget variance.
6. A hotel has an ADR of $180 and a RevPAR of $135. What is the occupancy?
A) 80%
B) 75%
C) 133%
D) 25%
Correct Answer: B) 75%
, Rationale: Occupancy = RevPAR / ADR = = 0.75 (75%). Option C
(133%) is the inverse (ADR/RevPAR). Option A and D are arbitrary.
7. What does "TRevPAR" stand for, and what does it measure?
A) Total Revenue Per Available Room – measures all revenue streams per
available room.
B) Transient Revenue Per Available Room – measures walk-in business.
C) Total Rooms Revenue Per Available Room – measures rooms only.
D) Targeted Revenue Per Available Room – measures budget achievement.
Correct Answer: A) Total Revenue Per Available Room – measures all revenue
streams per available room.
Rationale: TRevPAR includes rooms, F&B, spa, parking, and other ancillary
revenues divided by total available rooms. Option B misinterprets the 'T', C is just
RevPAR, and D is a fabricated term.
8. Which KPI is defined as the average rate paid for rooms sold, excluding
complimentary rooms?
A) RevPAR
B) ARR (Average Room Rate)
C) ADR (Average Daily Rate)
D) BAR (Best Available Rate)
Correct Answer: C) ADR (Average Daily Rate)
Rationale: ADR is specifically rooms revenue divided by rooms sold (excluding
comps). ARR (B) is often used interchangeably but ADR is the industry standard.
BAR (D) is a pricing strategy, not a historical performance metric.
MANAGEMENT EXAM 250 QUESTIONS AND
ANSWERS WITH DETAILED RATIONALES
LATEST UPDATE 2026
Section 1: Foundational KPIs & Performance Metrics (Questions 1–30)
1. Which metric measures the profit generated per available room, excluding
departmental costs like F&B, but including the cost of rooms operations?
A) RevPAR
B) GOPPAR
C) TRevPAR
D) EBITDAAR
Correct Answer: B) GOPPAR
Rationale: GOPPAR (Gross Operating Profit Per Available Room) measures the
profit after deducting departmental expenses and undistributed operating expenses
but before fixed charges. RevPAR (A) ignores costs entirely. TRevPAR (C)
measures total revenue, not profit. EBITDAAR (D) includes deductions for lease
and management fees, which GOPPAR excludes.
2. If a hotel has an Occupancy of 75% and an ADR of $200, what is its RevPAR?
A) $150
,B) $266.67
C) $200
D) $175
Correct Answer: A) $150
Rationale: RevPAR = Occupancy × ADR = 0.75 × 200 = $150. Option B
($266.67) is the inverse calculation (ADR / Occ). Option C ignores occupancy.
Option D is a random miscalculation.
3. What is the primary limitation of using RevPAR alone to measure hotel
performance?
A) It ignores seasonal fluctuations.
B) It does not account for variable distribution costs or total revenue generation.
C) It is only applicable to luxury properties.
D) It overvalues group business.
Correct Answer: B) It does not account for variable distribution costs or total
revenue generation.
Rationale: RevPAR is a volume-based metric (rooms revenue / available rooms). It
fails to capture total revenue (F&B, spa) or the cost of acquiring that revenue (e.g.,
high OTA commissions). Option A is false as RevPAR does reflect seasonality. C
and D are factually incorrect.
4. Which metric is most effective for comparing the operational efficiency of two
hotels with different total revenue structures?
A) ADR
B) Occupancy %
C) RevPAR
,D) GOPPAR
Correct Answer: D) GOPPAR
Rationale: GOPPAR is profit-based, allowing for a true efficiency comparison
regardless of size or revenue mix. ADR and Occupancy (A, B) are volume-only
measures. RevPAR (C) ignores costs, so a hotel with high RevPAR but high OPEX
might be less efficient.
5. The "Penetration Index" (PI) compares a hotel's performance against:
A) Its historical performance.
B) Its competitive set's average.
C) The market's average ADR.
D) Its budgeted forecast.
Correct Answer: B) Its competitive set's average.
Rationale: The Penetration Index (also called MPI for occupancy, ARI for ADR,
and RGI for RevPAR) specifically measures the hotel's share of the competitive
set's total performance. Option A is year-over-year growth; C is general market
(broader than comp set); D is budget variance.
6. A hotel has an ADR of $180 and a RevPAR of $135. What is the occupancy?
A) 80%
B) 75%
C) 133%
D) 25%
Correct Answer: B) 75%
, Rationale: Occupancy = RevPAR / ADR = = 0.75 (75%). Option C
(133%) is the inverse (ADR/RevPAR). Option A and D are arbitrary.
7. What does "TRevPAR" stand for, and what does it measure?
A) Total Revenue Per Available Room – measures all revenue streams per
available room.
B) Transient Revenue Per Available Room – measures walk-in business.
C) Total Rooms Revenue Per Available Room – measures rooms only.
D) Targeted Revenue Per Available Room – measures budget achievement.
Correct Answer: A) Total Revenue Per Available Room – measures all revenue
streams per available room.
Rationale: TRevPAR includes rooms, F&B, spa, parking, and other ancillary
revenues divided by total available rooms. Option B misinterprets the 'T', C is just
RevPAR, and D is a fabricated term.
8. Which KPI is defined as the average rate paid for rooms sold, excluding
complimentary rooms?
A) RevPAR
B) ARR (Average Room Rate)
C) ADR (Average Daily Rate)
D) BAR (Best Available Rate)
Correct Answer: C) ADR (Average Daily Rate)
Rationale: ADR is specifically rooms revenue divided by rooms sold (excluding
comps). ARR (B) is often used interchangeably but ADR is the industry standard.
BAR (D) is a pricing strategy, not a historical performance metric.
