CHIA Exam All Questions Correct
Solutions Current Update
Chain - Answer- ✔✔(1) displays hotel brand, which is clearly displayed to the public on
the building and in all interactions with the customer
(2) 24 chains in the US with 50,000 rooms or more
(3) 28 chains in the world with 75,000 rooms or more
(4) Holiday Inn was the first chain
Parent Company - Answer- ✔✔(1) consist of multiple chains
(2) often parent companies will have a variety of different types of chains
(3) 22 parent companies in the US with 10,000 rooms
(4) 34 parent companies worldwide with 25,000 rooms or more
(5) most parent companies will have a mixture of corporate and franchise hotels
Management Company - Answer- ✔✔(1) operates a hotel for another party
(2) has a management contract where it receives payment and/or some portion of
profits
(3) 32 management companies in the US with 8,000 rooms
(4) 58 management companies worldwide with 10,000 rooms
(5) some chains or parent companies manage their own hotels
Owner Company - Answer- ✔✔(1) many companies own multiple hotels
(2) 24 owner companies in the US
(3) 46 owner companies worldwide with 10,000 rooms
(4) some chain or parent companies own their own hotels
Asset Management Company - Answer- ✔✔(1) represents the owner in the operation of
a hotel
(2) hotel may have both a management company and an asset management company
(3) 30 asset management companies in the US
(4) 39 asset management companies worldwide with 1,000 rooms
(5) relatively new type of affiliation
Census - Answer- ✔✔STR's database of 160,000 hotels
Corporate Hotel - Answer- ✔✔a chain hotel owned and/or managed by the chain or the
parent company
Franchise Hotel - Answer- ✔✔a chain hotel run by a third party where the chain
receives some sort of franchise fee
Independent Hotel - Answer- ✔✔(1) not affiliated with a chain or parent company
,(2) 21,300 independent hotels in the US with 1.5 million rooms
(3) 100,000 independent hotels in the world in the STR database with 7.2 million rooms
Chain to Independent hotel distribution - Answer- ✔✔(1) in the US: 70% chain, 30%
independent
(2) worldwide: 47% chain, 53% independent
How many hotels provide performance data to STR? - Answer- ✔✔(1) in the US: 31,000
hotels, 94% of chain hotels and 2,200 independent hotels
(2) outside US: 20,000 hotels, including 2,900 independent hotels
Quasi Chains or Soft Brands - Answer- ✔✔(1) cross between a chain and a marketing
group from independent hotels
(2) created to bring hotels under a parent company flag
(3) hotels receive benefits of a parent company while being fairly independent
(4) smaller franchise fees and more independence than a true chain or brand
What are the 6 major geographic categories used by the hotel industry? - Answer-
✔✔(1) world
(2) continent
(3) sub-continent
(4) country
(5) market
(6) tract or submarket
Continents and Subcontinents - Answer- ✔✔(1) 4 continents: Americas, Europe,
Mideast/Africa, and Asia Pacific
(2) each continent has 3-4 subcontinents
(3) STR definitions roughly correspond to the UNWTO definitions
Americas subcontinents - Answer- ✔✔(1) caribbean
(2) central america
(3) north america
(4) south america
Asia Pacific subcontinents - Answer- ✔✔(1) central & south asia
(2) northeastern asia
(3) southeastern asia
(4) australia & oceania
Europe subcontinents - Answer- ✔✔(1) eastern europe
(2) northern europe
(3) southern europe
(4) western europe
,Mideast Africa - Answer- ✔✔(1) middle east
(2) northern africa
(3) southern africa
Countries - Answer- ✔✔(1) STR uses UNWTO definitions when recognizing countries
(2) Territories such as US virgin islands and puerto rico would appear as separate
countries
(3) there are 211 countries with one or more hotel
(4) there 39 countries with 50,000 rooms or more
(5) there are 9 countries with no properties (Central African Republic, Falkland Islands,
Kiribati, Kosovo, Liberia, Nauru, North Korea, South Sudan, and Tuvalu)
How many hotels are there in the US? - Answer- ✔✔53,000
Regions - Answer- ✔✔(1) Larger countries are split into regions
(2) there are 9 regions in the US that correspond to the government census regions
Markets - Answer- ✔✔(1) market is one of the most important geographic categories
below country, especially for a hotel GM
(2) Markets are created based upon the number of hotels in an area and the
participation
(3) Markets are commonly thought of as cities, although they are also used to represent
more more rural areas outside of the major cities
(4) in some countries, there may be large number of markets, whereas in others,
especially developing areas, there may be just a small number of markets
Markets in the US - Answer- ✔✔(1) the US is broken up into 163 geographic areas
called markets
(2) Markets roughly correspond to governments MSAs (Metropolitan Statistical Areas)
(3) sometimes markets cross state borders
Groupings of US Markets - Answer- ✔✔(1) there are 93 metro markets (cities) and 70
non-metro markets (rural areas)
(2) markets are reviewed annually to determine if new markets may be created based
on growth in available supply and sample
(3) the metro markets are sometimes separated into major cities and secondary cities
(4) in less populated states, the whole state may be a market
Worldwide Markets - Answer- ✔✔(1) countries outside the US contain varying numbers
of markets. Markets are based upon the number of hotels and the participation
(2) markets are reviewed annually to determine if new markets may be created based
on growth in available supply and sample
(3) smaller countries may consist of a single market
(4) countries that are slightly larger may consist of a market for the major city and then a
second market for all of the other hotels, named something like "Country Name Area"
, (5) countries that are larger may consist of markets for several major cities and then an
additional market for all of the other hotels (Country Name Area)
(6) Largest countries will have many markets just like the US
(7) No market will ever cross country boundaries
(8) various hotel industry publications will refer to groups of WW markets just like in the
US
Tracts of Submarkets - Answer- ✔✔(1) a tract is a geographic subset of a market
(2) the term "tract" is used in North America, but "submarket" is used outside North
America
(3) tracts are affected by hotel participation. They are reviewed annually to determine if
new tracts may be created based on growth in available supply and sample
(4) the tract category is especially important for hotel GMs. hotel data is often displayed
at the market and tract level, including on the STAR report
US Tracts - Answer- ✔✔(1) tracts are geographic sub-divisions of a market. There may
be anywhere from two to ten or more tracts in a market
(2) in a metro market, there is usually a tract for the CBD (Central business district)
(3) there may be other tracts in a city identified such as North/South/East/West, or
Airport/Beach, or they may have names for suburban neighborhoods
(4) in non-metro (rural) markets, a tract may represent a small city that is not large
enough to be a market by itself
(5) there are 630 tracts in the US
Worldwide Submarkets - Answer- ✔✔(1) outside of north america, the term "submarket"
is used instead of tract
(2) the number of submarkets depend upon the size of the market
(3) small markets may only consist of a single submarket. Larger markets may be
divided into many submarkets just like the US
(4) as the number of hotels and participation increases in a market, additional
submarkets will be created
Revisions to markets and tracts - Answer- ✔✔(1) STR market small revisions to markets
and tracts on a regular basis
(2) the changes are based upon: supply (new hotels opening), participation (new hotels
submitting performance data), client feedback
(3) most revisions are made at the end of the year, after December STAR reports and
before January STAR reports. a smaller amount of changes, related to increased
participation, are made in July at the half year point
(4) companies are notified of changes
The "Scale" Category - Answer- ✔✔(1) the scale category is one of the most popular
ways the industry looks at different hotels
(2) there are seven scale categories, six for chain hotels ranging from luxury to
economy, and one scale category for independent hotels
(3) average ADR for luxury in US and WW: close to $300
Solutions Current Update
Chain - Answer- ✔✔(1) displays hotel brand, which is clearly displayed to the public on
the building and in all interactions with the customer
(2) 24 chains in the US with 50,000 rooms or more
(3) 28 chains in the world with 75,000 rooms or more
(4) Holiday Inn was the first chain
Parent Company - Answer- ✔✔(1) consist of multiple chains
(2) often parent companies will have a variety of different types of chains
(3) 22 parent companies in the US with 10,000 rooms
(4) 34 parent companies worldwide with 25,000 rooms or more
(5) most parent companies will have a mixture of corporate and franchise hotels
Management Company - Answer- ✔✔(1) operates a hotel for another party
(2) has a management contract where it receives payment and/or some portion of
profits
(3) 32 management companies in the US with 8,000 rooms
(4) 58 management companies worldwide with 10,000 rooms
(5) some chains or parent companies manage their own hotels
Owner Company - Answer- ✔✔(1) many companies own multiple hotels
(2) 24 owner companies in the US
(3) 46 owner companies worldwide with 10,000 rooms
(4) some chain or parent companies own their own hotels
Asset Management Company - Answer- ✔✔(1) represents the owner in the operation of
a hotel
(2) hotel may have both a management company and an asset management company
(3) 30 asset management companies in the US
(4) 39 asset management companies worldwide with 1,000 rooms
(5) relatively new type of affiliation
Census - Answer- ✔✔STR's database of 160,000 hotels
Corporate Hotel - Answer- ✔✔a chain hotel owned and/or managed by the chain or the
parent company
Franchise Hotel - Answer- ✔✔a chain hotel run by a third party where the chain
receives some sort of franchise fee
Independent Hotel - Answer- ✔✔(1) not affiliated with a chain or parent company
,(2) 21,300 independent hotels in the US with 1.5 million rooms
(3) 100,000 independent hotels in the world in the STR database with 7.2 million rooms
Chain to Independent hotel distribution - Answer- ✔✔(1) in the US: 70% chain, 30%
independent
(2) worldwide: 47% chain, 53% independent
How many hotels provide performance data to STR? - Answer- ✔✔(1) in the US: 31,000
hotels, 94% of chain hotels and 2,200 independent hotels
(2) outside US: 20,000 hotels, including 2,900 independent hotels
Quasi Chains or Soft Brands - Answer- ✔✔(1) cross between a chain and a marketing
group from independent hotels
(2) created to bring hotels under a parent company flag
(3) hotels receive benefits of a parent company while being fairly independent
(4) smaller franchise fees and more independence than a true chain or brand
What are the 6 major geographic categories used by the hotel industry? - Answer-
✔✔(1) world
(2) continent
(3) sub-continent
(4) country
(5) market
(6) tract or submarket
Continents and Subcontinents - Answer- ✔✔(1) 4 continents: Americas, Europe,
Mideast/Africa, and Asia Pacific
(2) each continent has 3-4 subcontinents
(3) STR definitions roughly correspond to the UNWTO definitions
Americas subcontinents - Answer- ✔✔(1) caribbean
(2) central america
(3) north america
(4) south america
Asia Pacific subcontinents - Answer- ✔✔(1) central & south asia
(2) northeastern asia
(3) southeastern asia
(4) australia & oceania
Europe subcontinents - Answer- ✔✔(1) eastern europe
(2) northern europe
(3) southern europe
(4) western europe
,Mideast Africa - Answer- ✔✔(1) middle east
(2) northern africa
(3) southern africa
Countries - Answer- ✔✔(1) STR uses UNWTO definitions when recognizing countries
(2) Territories such as US virgin islands and puerto rico would appear as separate
countries
(3) there are 211 countries with one or more hotel
(4) there 39 countries with 50,000 rooms or more
(5) there are 9 countries with no properties (Central African Republic, Falkland Islands,
Kiribati, Kosovo, Liberia, Nauru, North Korea, South Sudan, and Tuvalu)
How many hotels are there in the US? - Answer- ✔✔53,000
Regions - Answer- ✔✔(1) Larger countries are split into regions
(2) there are 9 regions in the US that correspond to the government census regions
Markets - Answer- ✔✔(1) market is one of the most important geographic categories
below country, especially for a hotel GM
(2) Markets are created based upon the number of hotels in an area and the
participation
(3) Markets are commonly thought of as cities, although they are also used to represent
more more rural areas outside of the major cities
(4) in some countries, there may be large number of markets, whereas in others,
especially developing areas, there may be just a small number of markets
Markets in the US - Answer- ✔✔(1) the US is broken up into 163 geographic areas
called markets
(2) Markets roughly correspond to governments MSAs (Metropolitan Statistical Areas)
(3) sometimes markets cross state borders
Groupings of US Markets - Answer- ✔✔(1) there are 93 metro markets (cities) and 70
non-metro markets (rural areas)
(2) markets are reviewed annually to determine if new markets may be created based
on growth in available supply and sample
(3) the metro markets are sometimes separated into major cities and secondary cities
(4) in less populated states, the whole state may be a market
Worldwide Markets - Answer- ✔✔(1) countries outside the US contain varying numbers
of markets. Markets are based upon the number of hotels and the participation
(2) markets are reviewed annually to determine if new markets may be created based
on growth in available supply and sample
(3) smaller countries may consist of a single market
(4) countries that are slightly larger may consist of a market for the major city and then a
second market for all of the other hotels, named something like "Country Name Area"
, (5) countries that are larger may consist of markets for several major cities and then an
additional market for all of the other hotels (Country Name Area)
(6) Largest countries will have many markets just like the US
(7) No market will ever cross country boundaries
(8) various hotel industry publications will refer to groups of WW markets just like in the
US
Tracts of Submarkets - Answer- ✔✔(1) a tract is a geographic subset of a market
(2) the term "tract" is used in North America, but "submarket" is used outside North
America
(3) tracts are affected by hotel participation. They are reviewed annually to determine if
new tracts may be created based on growth in available supply and sample
(4) the tract category is especially important for hotel GMs. hotel data is often displayed
at the market and tract level, including on the STAR report
US Tracts - Answer- ✔✔(1) tracts are geographic sub-divisions of a market. There may
be anywhere from two to ten or more tracts in a market
(2) in a metro market, there is usually a tract for the CBD (Central business district)
(3) there may be other tracts in a city identified such as North/South/East/West, or
Airport/Beach, or they may have names for suburban neighborhoods
(4) in non-metro (rural) markets, a tract may represent a small city that is not large
enough to be a market by itself
(5) there are 630 tracts in the US
Worldwide Submarkets - Answer- ✔✔(1) outside of north america, the term "submarket"
is used instead of tract
(2) the number of submarkets depend upon the size of the market
(3) small markets may only consist of a single submarket. Larger markets may be
divided into many submarkets just like the US
(4) as the number of hotels and participation increases in a market, additional
submarkets will be created
Revisions to markets and tracts - Answer- ✔✔(1) STR market small revisions to markets
and tracts on a regular basis
(2) the changes are based upon: supply (new hotels opening), participation (new hotels
submitting performance data), client feedback
(3) most revisions are made at the end of the year, after December STAR reports and
before January STAR reports. a smaller amount of changes, related to increased
participation, are made in July at the half year point
(4) companies are notified of changes
The "Scale" Category - Answer- ✔✔(1) the scale category is one of the most popular
ways the industry looks at different hotels
(2) there are seven scale categories, six for chain hotels ranging from luxury to
economy, and one scale category for independent hotels
(3) average ADR for luxury in US and WW: close to $300
