Chapter 2 - HFT 2254 questions with
answers
reasons for hotel operation - correct answer ✔✔1 - meet travelers need
2 - meet profitable goals
owner of a hotel owns 2 assets - correct answer ✔✔1- real estate involved (land itself)
2- operating business
REITS - correct answer ✔✔Real Estate Investment Trusts
-public, stock-issuing companies that can own and operate their own hotels
financial success of any lodging facility - correct answer ✔✔depends on quality and skill of its
on-site management
special problems owners face - correct answer ✔✔-renovation of the hotel
-depressed market
-bankruptcy/repossession of the hotel
-permanently closing
-resignation of general manager
-owners not involved in day-to-day operations
management companies ($) - correct answer ✔✔receive the fee for its services regardless of
the hotels performance
, management companies duties - correct answer ✔✔-secure or reopen the hotel
-sales/marketing plans
-have reliable financial data
-suitable staffing
-show to possible buyers
-report to owner abt conditions
how management companies are ranked - correct answer ✔✔# of rooms they manage rather
than by the # of hotels they manage
ranks by participation - correct answer ✔✔-management company isnt a partner or owner of
the hotel it manages
-management company is a partner in ownership (1-20% share)
-management company only manages hotels it owns
-management company owns some, none, or only a part of the hotels it manages
preopening activities - correct answer ✔✔-hiring and training staff
-purchasing inventories
-other operational services
typical management agreements - correct answer ✔✔pg 29
pros of management companies - correct answer ✔✔-improved management quality
-documented managerial effectiveness is available (credibility to a loan application bc company
has been successful)
-payment for service can be tied to performance
-partnership opportunities are enhanced
answers
reasons for hotel operation - correct answer ✔✔1 - meet travelers need
2 - meet profitable goals
owner of a hotel owns 2 assets - correct answer ✔✔1- real estate involved (land itself)
2- operating business
REITS - correct answer ✔✔Real Estate Investment Trusts
-public, stock-issuing companies that can own and operate their own hotels
financial success of any lodging facility - correct answer ✔✔depends on quality and skill of its
on-site management
special problems owners face - correct answer ✔✔-renovation of the hotel
-depressed market
-bankruptcy/repossession of the hotel
-permanently closing
-resignation of general manager
-owners not involved in day-to-day operations
management companies ($) - correct answer ✔✔receive the fee for its services regardless of
the hotels performance
, management companies duties - correct answer ✔✔-secure or reopen the hotel
-sales/marketing plans
-have reliable financial data
-suitable staffing
-show to possible buyers
-report to owner abt conditions
how management companies are ranked - correct answer ✔✔# of rooms they manage rather
than by the # of hotels they manage
ranks by participation - correct answer ✔✔-management company isnt a partner or owner of
the hotel it manages
-management company is a partner in ownership (1-20% share)
-management company only manages hotels it owns
-management company owns some, none, or only a part of the hotels it manages
preopening activities - correct answer ✔✔-hiring and training staff
-purchasing inventories
-other operational services
typical management agreements - correct answer ✔✔pg 29
pros of management companies - correct answer ✔✔-improved management quality
-documented managerial effectiveness is available (credibility to a loan application bc company
has been successful)
-payment for service can be tied to performance
-partnership opportunities are enhanced
