Lodging Management Midterm Exam Questions
with Answers.
Which of the several traditional classifications has NOT been used to delineate the hotel
industry?
Size
Number of employees per guest room
Class
Plan
None of the above; all delineate the industry. - Correct Answer None of the above; all
delineate the industry.
Please list the 5 special characteristics of the hotel industry and explain them in detail with
your own words. - Correct Answer Perishability
Location
Fixed supply with varying demand
High operating cost
Seasonality
In terms of group business, how many rooms at the minimum should be requested at the
same time to be called "group business"? - Correct Answer 10
Which one of the following statement is true?
-Hotels are often built when the economy is very bad, so when they start running they can
also benefit from the positive economic cycle and harvest the revenue easily.
-Hotels are capital and labor intensive with a high fixed cost and low variable cost.
-Seasonality is important to the hotel business. The only pattern that exists is the quarterly
difference.
-Hotel business is often immune from other global influences. Typically only domestic
issues will impact the performance directly. - Correct Answer Hotels are capital and labor
intensive with a high fixed cost and low variable cost.
Which one of the following statement is false?
-Airport hotels and extended-stay hotels are particularly concerned about double
occupancy.
-Hotels managers are concerned about the quantitative measures, such as occupancy %
and double occupancy %.
-Double occupancy reflects the percentage of room sold that is occupied by more than two
people.
, -Occupancy percentage is assessing the relationship between demand and supply. -
Correct Answer Hotels managers are concerned about the quantitative measures, such as
occupancy % and double occupancy %.
Which one of the following is correct?
-One should always keep Out of Inventory rooms in the calculation to know how many
rooms are available for sale
-Room Sales (or revenue) only reflects the room price that customers pay for the overnight
stay. Hotel tax and room service are not included.
-Because RevPAR focuses on the entire property, so the figure tends to be larger than
ADR
-The number of rooms in the hotel is always the same as the number of rooms available for
sale. - Correct Answer Room Sales (or revenue) only reflects the room price that
customers pay for the overnight stay. Hotel tax and room service are not included.
Calculate RevPar for the following hotel. The hotel had 300 rooms available for sale last
night. The hotel sold 200 rooms and had gross rooms revenue of $36,000. Calculate
RevPar: - Correct Answer $120.00
Calculate RevPar for the following hotel. The hotel had 400 rooms available for sale last
night. The hotel sold 200 rooms and the ADR was $160. Calculate RevPAR: - Correct
Answer $80.00
Calculate ADR for the following hotel. The hotel had 300 rooms available for sale last night.
The hotel sold 200 rooms and had gross rooms revenue of $36,000. Calculate ADR: -
Correct Answer $180.00
Calculate Occupancy percentage for the following hotel. The hotel has 200 rooms. The
RevPAR for August 29 is $80.00, the ADR is $100. - Correct Answer 80%
Calculate occupancy%. The hotel has 120 rooms, 20 rooms are being renovated so they
are out-of-inventory (OOI) rooms. Last night 80 rooms were sold with checked-in guests of
120. - Correct Answer 80%
Calculate double occupancy%. The hotel has 120 rooms, 20 rooms are being renovated
so they are out-of-inventory (OOI) rooms. Last night 80 rooms were sold with checked-in
guests of 120. - Correct Answer 50%
"Location, location, location": - Correct Answer Refers to a critical component of real estate
The number of rooms occupied is the same as the number of: - Correct Answer Rooms
sold
Which is NOT a characteristic of the commercial lodging industry?
with Answers.
Which of the several traditional classifications has NOT been used to delineate the hotel
industry?
Size
Number of employees per guest room
Class
Plan
None of the above; all delineate the industry. - Correct Answer None of the above; all
delineate the industry.
Please list the 5 special characteristics of the hotel industry and explain them in detail with
your own words. - Correct Answer Perishability
Location
Fixed supply with varying demand
High operating cost
Seasonality
In terms of group business, how many rooms at the minimum should be requested at the
same time to be called "group business"? - Correct Answer 10
Which one of the following statement is true?
-Hotels are often built when the economy is very bad, so when they start running they can
also benefit from the positive economic cycle and harvest the revenue easily.
-Hotels are capital and labor intensive with a high fixed cost and low variable cost.
-Seasonality is important to the hotel business. The only pattern that exists is the quarterly
difference.
-Hotel business is often immune from other global influences. Typically only domestic
issues will impact the performance directly. - Correct Answer Hotels are capital and labor
intensive with a high fixed cost and low variable cost.
Which one of the following statement is false?
-Airport hotels and extended-stay hotels are particularly concerned about double
occupancy.
-Hotels managers are concerned about the quantitative measures, such as occupancy %
and double occupancy %.
-Double occupancy reflects the percentage of room sold that is occupied by more than two
people.
, -Occupancy percentage is assessing the relationship between demand and supply. -
Correct Answer Hotels managers are concerned about the quantitative measures, such as
occupancy % and double occupancy %.
Which one of the following is correct?
-One should always keep Out of Inventory rooms in the calculation to know how many
rooms are available for sale
-Room Sales (or revenue) only reflects the room price that customers pay for the overnight
stay. Hotel tax and room service are not included.
-Because RevPAR focuses on the entire property, so the figure tends to be larger than
ADR
-The number of rooms in the hotel is always the same as the number of rooms available for
sale. - Correct Answer Room Sales (or revenue) only reflects the room price that
customers pay for the overnight stay. Hotel tax and room service are not included.
Calculate RevPar for the following hotel. The hotel had 300 rooms available for sale last
night. The hotel sold 200 rooms and had gross rooms revenue of $36,000. Calculate
RevPar: - Correct Answer $120.00
Calculate RevPar for the following hotel. The hotel had 400 rooms available for sale last
night. The hotel sold 200 rooms and the ADR was $160. Calculate RevPAR: - Correct
Answer $80.00
Calculate ADR for the following hotel. The hotel had 300 rooms available for sale last night.
The hotel sold 200 rooms and had gross rooms revenue of $36,000. Calculate ADR: -
Correct Answer $180.00
Calculate Occupancy percentage for the following hotel. The hotel has 200 rooms. The
RevPAR for August 29 is $80.00, the ADR is $100. - Correct Answer 80%
Calculate occupancy%. The hotel has 120 rooms, 20 rooms are being renovated so they
are out-of-inventory (OOI) rooms. Last night 80 rooms were sold with checked-in guests of
120. - Correct Answer 80%
Calculate double occupancy%. The hotel has 120 rooms, 20 rooms are being renovated
so they are out-of-inventory (OOI) rooms. Last night 80 rooms were sold with checked-in
guests of 120. - Correct Answer 50%
"Location, location, location": - Correct Answer Refers to a critical component of real estate
The number of rooms occupied is the same as the number of: - Correct Answer Rooms
sold
Which is NOT a characteristic of the commercial lodging industry?
