CHIA Certification Test Questions
Correct Solutions
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 which is clearly displayed
to the public on the building and in all interactions with the customer.
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
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
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.
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
The US is broken up into _____ geographic areas called markets - Answer- ✔✔163
T/F Markets can cross state borders - Answer- ✔✔True
There are _____ tracts in the US - Answer- ✔✔628
Revisions to markets and tracts are made at the _______. - Answer- ✔✔end of the year
(after Dec. and before Jan.); changes are not made during the year
Tracts - Answer- ✔✔Geographic sub-divisions of a market
There may be anywhere from ___ to ___ tracts in a market - Answer- ✔✔2-10
In a metro market, there is usually a tract from the downtown area, sometimes called
the _________ - Answer- ✔✔Central Business District
Outside of North America, the term ______ is used instead of Tract. - Answer-
✔✔Submarket
What are the revisions to markets and tracts based upon? - Answer- ✔✔-Supply (new
hotels opening)
-Participation (new hotels submitting performance data)
-Client feedback
T/F STR uses the UNWTO definitions when it comes to recognizing countries - Answer-
✔✔True
T/F No market will ever cross country borders - Answer- ✔✔True
What are the 7 Scale categories? - Answer- ✔✔1. Luxury chains
2. Upper upscale chains
3. Upscale chains
4. Upper midscale chains
5. Midscale chains
6. Economy chains
7. Independents
What is the average ADR for Luxury chains? - Answer- ✔✔$300
Correct Solutions
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 which is clearly displayed
to the public on the building and in all interactions with the customer.
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
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
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.
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
The US is broken up into _____ geographic areas called markets - Answer- ✔✔163
T/F Markets can cross state borders - Answer- ✔✔True
There are _____ tracts in the US - Answer- ✔✔628
Revisions to markets and tracts are made at the _______. - Answer- ✔✔end of the year
(after Dec. and before Jan.); changes are not made during the year
Tracts - Answer- ✔✔Geographic sub-divisions of a market
There may be anywhere from ___ to ___ tracts in a market - Answer- ✔✔2-10
In a metro market, there is usually a tract from the downtown area, sometimes called
the _________ - Answer- ✔✔Central Business District
Outside of North America, the term ______ is used instead of Tract. - Answer-
✔✔Submarket
What are the revisions to markets and tracts based upon? - Answer- ✔✔-Supply (new
hotels opening)
-Participation (new hotels submitting performance data)
-Client feedback
T/F STR uses the UNWTO definitions when it comes to recognizing countries - Answer-
✔✔True
T/F No market will ever cross country borders - Answer- ✔✔True
What are the 7 Scale categories? - Answer- ✔✔1. Luxury chains
2. Upper upscale chains
3. Upscale chains
4. Upper midscale chains
5. Midscale chains
6. Economy chains
7. Independents
What is the average ADR for Luxury chains? - Answer- ✔✔$300
