CHIA UPDATED QUESTIONS AND ANSWERS GRADED A+
✔✔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. - ✔✔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 - ✔✔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 - ✔✔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. - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔A) The KPIs are calculated
using formulas and are based upon raw data.
✔✔Which one of the following is an accurate statement regarding percent changes?
A) Percent change is the same as point change.
, B) When the percent changes of the subject hotel and the comp set are both
negative,the subject hotel wants to have the highest negative number, for example -7
comparedto -3.
C) Percent changes show amount of change (increase or decrease) in a KPI this
yearcompared to last year.
D)Percent changes are never impacted by holidays or special events - ✔✔C) Percent
changes show amount of change (increase or decrease) in a KPI this yearcompared to
last year.
✔✔Which one of the following is NOT an accurate statement regarding the multiple time
periods for monthly or daily data?
A) Monthly multiple time periods include Year-To-Date, Running 3-month and
Running12-month time periods.
B) Daily multiple time periods include Week, Month-To-Date and Running 28-day
timeperiods.
C) All multiple time periods are calculated based upon aggregated raw data, rather
thanstraight averages.
D) Running 12-month data has little value and is rarely used - ✔✔D) Running 12-month
data has little value and is rarely used
✔✔Which one of the following is NOT an accurate statement regarding the KPIs for a
competitive set?
A) The average KPIs for a comp set are calculated based upon a straight average of
theKPIs for each member of the comp set.
B) The average KPIs for a comp set are calculated based upon the aggregated rawdata
of each member of the comp set.
C) The average KPIs for a comp set are weighted by the number of rooms in each
hotelthat is a member of the comp set.
D) To calculate average KPIs for a comp set, add up the Supply, Demand and
Revenueof each member and then apply the KPI formulas. - ✔✔A) The average KPIs
for a comp set are calculated based upon a straight average of theKPIs for each
member of the comp set.
✔✔When you receive your STAR Report, you see that your occupancy Index was 95
and your ADR Index was 120. What do you know?
A) Your RevPAR index will be very close to 100.
B) You outperformed your comp set when it comes to occupancy but not ADR.
C) The subject hotel is underperforming the comp set in occupancy but is
outperformingthe comp set when it comes to average daily rate.
D) Your rates are lower than the average rates of your competitors. - ✔✔C) The subject
hotel is underperforming the comp set in occupancy but is outperformingthe comp set
when it comes to average daily rate.
✔✔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. - ✔✔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 - ✔✔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 - ✔✔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. - ✔✔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. - ✔✔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 - ✔✔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 - ✔✔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 - ✔✔A) The KPIs are calculated
using formulas and are based upon raw data.
✔✔Which one of the following is an accurate statement regarding percent changes?
A) Percent change is the same as point change.
, B) When the percent changes of the subject hotel and the comp set are both
negative,the subject hotel wants to have the highest negative number, for example -7
comparedto -3.
C) Percent changes show amount of change (increase or decrease) in a KPI this
yearcompared to last year.
D)Percent changes are never impacted by holidays or special events - ✔✔C) Percent
changes show amount of change (increase or decrease) in a KPI this yearcompared to
last year.
✔✔Which one of the following is NOT an accurate statement regarding the multiple time
periods for monthly or daily data?
A) Monthly multiple time periods include Year-To-Date, Running 3-month and
Running12-month time periods.
B) Daily multiple time periods include Week, Month-To-Date and Running 28-day
timeperiods.
C) All multiple time periods are calculated based upon aggregated raw data, rather
thanstraight averages.
D) Running 12-month data has little value and is rarely used - ✔✔D) Running 12-month
data has little value and is rarely used
✔✔Which one of the following is NOT an accurate statement regarding the KPIs for a
competitive set?
A) The average KPIs for a comp set are calculated based upon a straight average of
theKPIs for each member of the comp set.
B) The average KPIs for a comp set are calculated based upon the aggregated rawdata
of each member of the comp set.
C) The average KPIs for a comp set are weighted by the number of rooms in each
hotelthat is a member of the comp set.
D) To calculate average KPIs for a comp set, add up the Supply, Demand and
Revenueof each member and then apply the KPI formulas. - ✔✔A) The average KPIs
for a comp set are calculated based upon a straight average of theKPIs for each
member of the comp set.
✔✔When you receive your STAR Report, you see that your occupancy Index was 95
and your ADR Index was 120. What do you know?
A) Your RevPAR index will be very close to 100.
B) You outperformed your comp set when it comes to occupancy but not ADR.
C) The subject hotel is underperforming the comp set in occupancy but is
outperformingthe comp set when it comes to average daily rate.
D) Your rates are lower than the average rates of your competitors. - ✔✔C) The subject
hotel is underperforming the comp set in occupancy but is outperformingthe comp set
when it comes to average daily rate.
