Correct Answers (A Pass) 2025
Update
Most of the entities below are classified as "Parent Companies". Which one is a "Chain"
that is part of a larger Parent Company?
A)InterContinental Hotel Group
B) Accor
C) Sheraton
D) Hilton International - Answer- ✔✔C) Sheraton
Which one of the following is an accurate statement about chains?
A) When you drive up to a hotel, it is usually difficult to know the chain name
.B) The chain affiliation of a hotel never changes.
C) While the U.S. has more chain that independent hotels, in other countries we
oftenfind that there are more independent than chain hotels.
D) New chains are rarely created in the hotel industry. - Answer- ✔✔C) While the U.S.
has more chain that independent hotels, in other countries we oftenfind that there are
more independent than chain hotels.
Which one of the following is an accurate statement about management companies?
A) Management companies only manage hotels in a single chain.
B) Chains or parent companies never manage their own hotels.
C) Management companies have contracts where they receive payment and/or
someportion of profits.
D) A management company and an asset management company serve the
samepurpose - Answer- ✔✔C) Management companies have contracts where they
receive payment and/or someportion of profits.
What is an accurate statement regarding "Soft Brand" compared to traditional brands?
A) Hotels that are part of a Soft Brand never benefit from reservation systems
andloyalty programs.
B) Very few of the large parent companies have "Soft Brands".
C) Hotels that are part of a "Soft Brand" are usually unique compared to
traditionalbrands where every hotel in the chain is similar.
D) Soft Brands have decreased in popularity in recent years. - Answer- ✔✔C) Hotels
that are part of a "Soft Brand" are usually unique compared to traditionalbrands where
every hotel in the chain is similar
,Which one of the following is an accurate statement about the geographic category
known as market?
A) A country would always have two or more markets.
B) A country would never have more than 10 markets.
C) Markets only include hotels that are in the big cities.
D) A market could include hotels that are in rural areas outside of the big cities. -
Answer- ✔✔D) A market could include hotels that are in rural areas outside of the big
cities
Which one of the following is NOT an accurate statement about the geographic
category known as submarket?
A) There will always be four or more submarkets in a market.
B) A city or metro market will frequently have a Downtown or Central Business
District(CBD) submarket.
C) In a rural market, a small city could be a submarket.
D) Submarkets in a city or metro market could be identified by North, South, East,
Westor by neighborhood names. - Answer- ✔✔A) There will always be four or more
submarkets in a market
Which one of the following is NOT an accurate statement about the non-geographic
category known as scale?
A) There is one group for all independents hotels.
B) Scale groups are reevaluated every year, so a chain could move from one
scalegroup this year to a different scale group next year.
C) There are six scale groups
D) Scale groups are based upon ADR to be as consistent as possible - Answer- ✔✔C)
There are six scale groups.
Which one of the following is an accurate statement regarding scale and class groups?
A) A Sheraton hotel in a big city can be in one Scale group and a Sheraton hotel in
asmall city can be in a different scale group.
B) A Sheraton hotel in an emerging nation can be in one class group and a
Sheratonhotel in a developed nation can be in a different class group.
C) A chain can specify which scale category they want to be in.
D) Every hotel in a single chain will be in the same scale and class group everywhere
inthe world - Answer- ✔✔D) Every hotel in a single chain will be in the same scale and
class group everywhere inthe world
Which one of the following is an accurate statement about benchmarking?
A) Benchmarking only takes place in the hotel industry.
, B) Benchmarking is never related to a General Manager's compensation or bonus.
C) A hotel will compare their performance to a comp set, but not to industry segments.
D) Benchmarking takes place at the property level for a hotel, at the corporate level fora
chain, and for a tourism organization relative to comparable markets. - Answer- ✔✔D)
Benchmarking takes place at the property level for a hotel, at the corporate level fora
chain, and for a tourism organization relative to comparable markets.
Which one of the following is an accurate statement regarding the rules related to
competitive sets?
A) There is not a minimum number of hotels that can be in a comp set.
B) There is a maximum number of 25 hotels that can be in a comp set.
C) There are percent check rules to protect the confidentiality of a single hotel, chain or
parent company.
D) Percent checks are calculated based upon the number of hotels in the comp set,
notbased upon the number of rooms. - Answer- ✔✔C) There are percent check rules to
protect the confidentiality of a single hotel, chain orparent company
Which one of the following is an accurate statement regarding a hotel's ability to change
their comp set?
A) A hotel can only change their comp set at the beginning of the year.
B) A hotel can add a single participating hotel to its competitive set at any time.
C) The requirement that changes include two or more hotels ensures confidentiality
bynot isolating data of a single competitor hotel.
D) A subject hotel can immediately remove a single hotel from its comp set the
samemonth that it closes - Answer- ✔✔C) The requirement that changes include two or
more hotels ensures confidentiality bynot isolating data of a single competitor hotel.
Which one of the following is an accurate statement regarding the raw data fields used
by the hotel industry?
A) Supply is the number of rooms sold by the hotel.
B) Room Revenues include Food and Beverage Revenues.
C) Demand is the number of rooms available for a hotel to sell.
D) The definitions for raw data are based upon the Uniform System of Accounts for
theLodging Industry - Answer- ✔✔D) The definitions for raw data are based upon the
Uniform System of Accounts for theLodging Industry
Which one of the following is an accurate statement regarding KPIs?
A) The KPIs are calculated using formulas and are based upon raw data.
B) The KPIs are all currency amounts.
C) KPI stands for Key Participation Identifiers.
D) STAR Reports display raw data, but not the KPIs - Answer- ✔✔A) The KPIs are
calculated using formulas and are based upon raw data.