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What are the different kinds of affiliations a single hotel can have? - (ANSWER)Chain
Parent Company
Operation: Corporate, Franchise, or Independent
Management Company
Owner
Asset Management Company
Membership or Marketing Groups
What does a chain represent? - (ANSWER)The hotel brand
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
Page 1 of 44
,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
Page 2 of 44
,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.
C. Independent hotels are mostly Luxury class hotels in Urban locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity. - (ANSWER)A. They're not affiliated with a
specific chain.
Which is a true statement about management companies?
A. They have contracts where they receive payment for their services and/or some portion of the profits.
B. They may manage only one chain.
C. They will always own the hotels they manage.
Page 3 of 44
, D. They serve the exact same role as asset management companies. - (ANSWER)A. They have contracts...
What are the major geographic categories? - (ANSWER)World
Continent
Sub-continent
Country
Market
Tract or Submarket
What are the 4 continents (according to STR)? - (ANSWER)Americas, Europe, Mideast/Africa, and Asia
Pacific
Each continent includes how many sub-continents? - (ANSWER)3-4
What are the 9 US regions? - (ANSWER)New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
What are the 2 most important types of classifications if you're a hotel manager (not a corporation)? -
(ANSWER)Market and Tract/Sub-market
What is STR's definition of a region? - (ANSWER)It refers to a specific region WITHIN a country
How are markets created? - (ANSWER)Based on the number of hotels in the area and participation
Page 4 of 44
What are the different kinds of affiliations a single hotel can have? - (ANSWER)Chain
Parent Company
Operation: Corporate, Franchise, or Independent
Management Company
Owner
Asset Management Company
Membership or Marketing Groups
What does a chain represent? - (ANSWER)The hotel brand
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
Page 1 of 44
,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
Page 2 of 44
,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.
C. Independent hotels are mostly Luxury class hotels in Urban locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity. - (ANSWER)A. They're not affiliated with a
specific chain.
Which is a true statement about management companies?
A. They have contracts where they receive payment for their services and/or some portion of the profits.
B. They may manage only one chain.
C. They will always own the hotels they manage.
Page 3 of 44
, D. They serve the exact same role as asset management companies. - (ANSWER)A. They have contracts...
What are the major geographic categories? - (ANSWER)World
Continent
Sub-continent
Country
Market
Tract or Submarket
What are the 4 continents (according to STR)? - (ANSWER)Americas, Europe, Mideast/Africa, and Asia
Pacific
Each continent includes how many sub-continents? - (ANSWER)3-4
What are the 9 US regions? - (ANSWER)New England
Middle Atlantic
South Atlantic
East North Central
East South Central
West North Central
West South Central
Mountain
Pacific
What are the 2 most important types of classifications if you're a hotel manager (not a corporation)? -
(ANSWER)Market and Tract/Sub-market
What is STR's definition of a region? - (ANSWER)It refers to a specific region WITHIN a country
How are markets created? - (ANSWER)Based on the number of hotels in the area and participation
Page 4 of 44
