CHIA Practice Exam
I. Hotel Industry Foundations
Who are the players?
1) 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
2) Which is a true statement about Parent Companies?
a. Parent Companies and the related chains have changed over time
b. Parent Companies must consist of no more than five chains
c. Parent Companies can only consist of chains in a single Scale
d. Parent Companies can only have hotels in a single country
3) What are the three different operation types?
a. Corporate, Managed, Independent
b. Managed, Franchise, Independent
c. Managed, Clustered, Independent
d. Corporate, Franchise, Independent
4) 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
5) Which is a true statement about Management Companies?
a. Management companies have contracts where they receive payment for their services
and/or some portion of profits
b. Management companies may manage only one chain
c. Management companies will always own the hotels they manage
d. Management companies serve the exact same role as asset management companies
Industry Categorizations - Geographic
6) Which is a true statement regarding geographic categorization?
a. STR geographic categories are limited to North America
, b. STR uses the UNWTO definitions when it comes to recognizing countries
c. General managers of hotels do not need to know geographic categories
d. The hotel industry uses seven continents to categorize hotels
7) Which is a true statement regarding markets?
e. Markets include hotels that are in big cities, not rural areas
f. A country would never have more than 100 markets and never have less than 2 markets
g. No market will ever cross country boundaries
h. There is another name for Markets outside the U.S.
8) In descending order of geographic size, which option below is correct?
a. Continent, Sub-Continent, Country, Tract/Sub-Market, Market
b. Continent, Country, Sub-Continent, Tract/Sub-Market, Market
c. Continent, Sub-Continent, Market, Country, Tract/Sub-Market
d. Continent, Sub-Continent, Country, Market, Tract/Sub-Market
9) Which two geographic categories are the most important for a hotel GM?
a. Region and Market
b. Market and Tract/Sub-Market
c. Region and Tract/Sub-Market
d. Country and Tract/Sub-Market
10) Markets and tracts are created based on what two determining factors?
a. Geographic size and population
b. Geographic size and participation
c. Number of hotels and participation
d. Number of hotels and population
11) Which is a true statement regarding Tracts
a. Tracts are referred to as Sub-Markets outside of North America
b. Tracts are never used to represent a city in rural markets
c. Tracts are geographic sub-divisions of a Region
d. A country will never have more than 100 Tracts
12) Changes to how Markets and Tracts are geographically defined are made how often?
a. Monthly
b. Annually
c. Every five years
d. No regular schedule
Industry Categorizations – Non-Geographic
, 13) Which two non-geographic categories are the most important for a hotel GM?
a. Scale and Class
b. Scale and Location
c. Location and Type
d. Class and Type
14) How many Scale categories are there compared to Class categories?
a. 6 Scale categories and 6 Class categories
b. 6 Scale categories and 7 Class categories
c. 7 Scale categories and 6 Class categories
d. 7 Scale categories and 7 Class categories
15) Which one of the following is an accurate statement regarding Scale and Class groups and a
single chain?
a. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan
can be in a different Scale group
b. A Ritz Carlson hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan
can be in a different Class group
c. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country
throughout the world
d. Ritz Carlton may choose which Scale and which Class they are in
16) Which one of the following is an accurate statement regarding Class groups?
a. The names of the Class group are very different than the names of the Scale groups
b. Class groups are more popular and relevant in North America rather than outside North
America
a. Independent hotels are slotted into Class groups based upon the ADR of the
independent hotel compared to the chain hotels in the same market
c. Once an independent hotel is slotted into a Class group, it will never change
17) Which one of the following is NOT a Location Category used by the hotel industry?
d. Airport
e. Suburban
a. Oceanfront
f. Urban
18) Which is NOT a valid non-geographic category?
a. Extended Stay
b. Boutique
c. Guest Satisfaction Rating
d. Destination Resort
I. Hotel Industry Foundations
Who are the players?
1) 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
2) Which is a true statement about Parent Companies?
a. Parent Companies and the related chains have changed over time
b. Parent Companies must consist of no more than five chains
c. Parent Companies can only consist of chains in a single Scale
d. Parent Companies can only have hotels in a single country
3) What are the three different operation types?
a. Corporate, Managed, Independent
b. Managed, Franchise, Independent
c. Managed, Clustered, Independent
d. Corporate, Franchise, Independent
4) 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
5) Which is a true statement about Management Companies?
a. Management companies have contracts where they receive payment for their services
and/or some portion of profits
b. Management companies may manage only one chain
c. Management companies will always own the hotels they manage
d. Management companies serve the exact same role as asset management companies
Industry Categorizations - Geographic
6) Which is a true statement regarding geographic categorization?
a. STR geographic categories are limited to North America
, b. STR uses the UNWTO definitions when it comes to recognizing countries
c. General managers of hotels do not need to know geographic categories
d. The hotel industry uses seven continents to categorize hotels
7) Which is a true statement regarding markets?
e. Markets include hotels that are in big cities, not rural areas
f. A country would never have more than 100 markets and never have less than 2 markets
g. No market will ever cross country boundaries
h. There is another name for Markets outside the U.S.
8) In descending order of geographic size, which option below is correct?
a. Continent, Sub-Continent, Country, Tract/Sub-Market, Market
b. Continent, Country, Sub-Continent, Tract/Sub-Market, Market
c. Continent, Sub-Continent, Market, Country, Tract/Sub-Market
d. Continent, Sub-Continent, Country, Market, Tract/Sub-Market
9) Which two geographic categories are the most important for a hotel GM?
a. Region and Market
b. Market and Tract/Sub-Market
c. Region and Tract/Sub-Market
d. Country and Tract/Sub-Market
10) Markets and tracts are created based on what two determining factors?
a. Geographic size and population
b. Geographic size and participation
c. Number of hotels and participation
d. Number of hotels and population
11) Which is a true statement regarding Tracts
a. Tracts are referred to as Sub-Markets outside of North America
b. Tracts are never used to represent a city in rural markets
c. Tracts are geographic sub-divisions of a Region
d. A country will never have more than 100 Tracts
12) Changes to how Markets and Tracts are geographically defined are made how often?
a. Monthly
b. Annually
c. Every five years
d. No regular schedule
Industry Categorizations – Non-Geographic
, 13) Which two non-geographic categories are the most important for a hotel GM?
a. Scale and Class
b. Scale and Location
c. Location and Type
d. Class and Type
14) How many Scale categories are there compared to Class categories?
a. 6 Scale categories and 6 Class categories
b. 6 Scale categories and 7 Class categories
c. 7 Scale categories and 6 Class categories
d. 7 Scale categories and 7 Class categories
15) Which one of the following is an accurate statement regarding Scale and Class groups and a
single chain?
a. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan
can be in a different Scale group
b. A Ritz Carlson hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan
can be in a different Class group
c. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country
throughout the world
d. Ritz Carlton may choose which Scale and which Class they are in
16) Which one of the following is an accurate statement regarding Class groups?
a. The names of the Class group are very different than the names of the Scale groups
b. Class groups are more popular and relevant in North America rather than outside North
America
a. Independent hotels are slotted into Class groups based upon the ADR of the
independent hotel compared to the chain hotels in the same market
c. Once an independent hotel is slotted into a Class group, it will never change
17) Which one of the following is NOT a Location Category used by the hotel industry?
d. Airport
e. Suburban
a. Oceanfront
f. Urban
18) Which is NOT a valid non-geographic category?
a. Extended Stay
b. Boutique
c. Guest Satisfaction Rating
d. Destination Resort
