©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
HFT 4253 Modules 1,2,4, Test 1 Questions
With Correct Answers 100% Verified.
Range of Lodging Property Alternatives - Answer✔Hostel, limited service hotels, full service
hotels, luxury hotels, destination resorts
The Lodging Industry has historically been linked to - Answer✔routes of transportation
1920s - Answer✔we got trains which made it easier for people to travel around the country and
this created many new destination spots where hotels were being built
1950s - Answer✔we got cars which made it even easier to travel and the 1st Holiday Inn,
Howard Johnson, and Marriott opened
We can also classify hotels by location - Answer✔Airport
Suburban
Urban
Highway
Resort
Line Department - Answer✔Those directly involved in the "chain of command"
Directly responsible for revenues
- Front office and food/beverage
Also responsible for property operations
- Housekeeping, maintenance, and engineering
Staff Department - Answer✔Providing technical, supportive assistance to support line decision
makers
Making recommendations to (but not decisions for) line decision makers
- Purchasing, human relations, and accounting
Revenue Center - Answer✔A hotel department that generates revenue
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
- Front office and food/beverage departments
- Also revenues from telephone services, space
rental, and fees from parking garages, vending
machines, and golf courses
Cost Center - Answer✔A hotel department that incurs costs in support of a revenue center
- Marketing, maintenance, accounting, human
resources, and security departments
Owner - Answer✔Owns the actual building/property
Owner/Operator - Answer✔A hotel investor who also manages (operates) the hotel.
Management company - Answer✔An organization that operates a hotel for a fee. Sometimes
referred to as a contract company.
First tier (management company): - Answer✔Management companies that operate hotels for
owners using the management company's trade name as the hotel brand: Marriott, Hilton,
Starwood
Second tier (management company): - Answer✔Management companies that operate hotels
for owners and do not use the management company name as part of the hotel name:
Interstate, White Lodging, Winegardner & Hammonds
Pros of Management Contracts - Answer✔Improved management quality, Documented
managerial effectiveness is available, Payment for services can be tied to performance
Cons of Management Contracts - Answer✔Owner generally can't choose GM or top execs,
Objectives of owner and management company may not be aligned
Franchise - Answer✔An arrangement whereby one party (the franchisor) allows another party
to use its logo, brand name, systems, and resources in exchange for a fee.
Franchiser - Answer✔An organization that manages a brand and sells the right to use the brand
name.
Franchisee - Answer✔An individual or company that buys, under specific terms and conditions,
the right to use a brand name for a fixed period of time and at an agreed-upon price.
Franchising and the Lodging Industry - Answer✔It is important to understand that, in most
cases, franchise companies do not actually own the hotels operating under their brand names,
they own the right to sell the brand name and set the standards that are followed by affiliated
hotels.
2|Page
HFT 4253 Modules 1,2,4, Test 1 Questions
With Correct Answers 100% Verified.
Range of Lodging Property Alternatives - Answer✔Hostel, limited service hotels, full service
hotels, luxury hotels, destination resorts
The Lodging Industry has historically been linked to - Answer✔routes of transportation
1920s - Answer✔we got trains which made it easier for people to travel around the country and
this created many new destination spots where hotels were being built
1950s - Answer✔we got cars which made it even easier to travel and the 1st Holiday Inn,
Howard Johnson, and Marriott opened
We can also classify hotels by location - Answer✔Airport
Suburban
Urban
Highway
Resort
Line Department - Answer✔Those directly involved in the "chain of command"
Directly responsible for revenues
- Front office and food/beverage
Also responsible for property operations
- Housekeeping, maintenance, and engineering
Staff Department - Answer✔Providing technical, supportive assistance to support line decision
makers
Making recommendations to (but not decisions for) line decision makers
- Purchasing, human relations, and accounting
Revenue Center - Answer✔A hotel department that generates revenue
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
- Front office and food/beverage departments
- Also revenues from telephone services, space
rental, and fees from parking garages, vending
machines, and golf courses
Cost Center - Answer✔A hotel department that incurs costs in support of a revenue center
- Marketing, maintenance, accounting, human
resources, and security departments
Owner - Answer✔Owns the actual building/property
Owner/Operator - Answer✔A hotel investor who also manages (operates) the hotel.
Management company - Answer✔An organization that operates a hotel for a fee. Sometimes
referred to as a contract company.
First tier (management company): - Answer✔Management companies that operate hotels for
owners using the management company's trade name as the hotel brand: Marriott, Hilton,
Starwood
Second tier (management company): - Answer✔Management companies that operate hotels
for owners and do not use the management company name as part of the hotel name:
Interstate, White Lodging, Winegardner & Hammonds
Pros of Management Contracts - Answer✔Improved management quality, Documented
managerial effectiveness is available, Payment for services can be tied to performance
Cons of Management Contracts - Answer✔Owner generally can't choose GM or top execs,
Objectives of owner and management company may not be aligned
Franchise - Answer✔An arrangement whereby one party (the franchisor) allows another party
to use its logo, brand name, systems, and resources in exchange for a fee.
Franchiser - Answer✔An organization that manages a brand and sells the right to use the brand
name.
Franchisee - Answer✔An individual or company that buys, under specific terms and conditions,
the right to use a brand name for a fixed period of time and at an agreed-upon price.
Franchising and the Lodging Industry - Answer✔It is important to understand that, in most
cases, franchise companies do not actually own the hotels operating under their brand names,
they own the right to sell the brand name and set the standards that are followed by affiliated
hotels.
2|Page
