HFT 4464 Exam 3 With Correct
Answers
What makes the hotel industry one of the most complex and specialized
types of real estate? - ANSWER Hotel owners generally bear the economic
risk of the underlying business
Which of the following is not part of the initial screening of a hotel property
for purchase? - ANSWER Hiring physical due diligence experts
Comparative statement analysis is also known as - ANSWER Horizontal
analysis and variance analysis
Alfredo borrows a loan of $100,000 for his new restaurant at 8% for 5 year
with a 4 point up-front clause. What is the effective amount borrowed for
this loan - ANSWER 96,000
To be professional in negotiations means all of the following except: -
ANSWER always be in a suit and tie
Which is an activity that does not typically take place at the closing of a
transaction? - ANSWER none of the above
Collaterals and guarantees are all of the following except - ANSWER
something a borrower would want to include when negotiating
The following are all combinations and/or part of a project team except -
ANSWER all of the individuals involved and not the firms
Which of the following is not part of the initial screening of a hotel property
, for purchase? - ANSWER hiring
Hotel owners typically are responsible for providing - ANSWER land,
building, furnishing and equipment
Which of the following is not usually specified regarding financial reporting -
ANSWER who prepares the reports
Which of the following is not a potential issue in ongoing hotel management
agreements - ANSWER opportunities for owner and manager to add
additional properties
Which fees are typically paid pursuant to a management agreement -
ANSWER base management fee, incentive management, accounting services
fee
Which of the following is typically not charged to owners by management
companies - ANSWER corporate overhead fee
Why is the concept of useful life important to the capital planning process? -
ANSWER each component of a hotel has its own life cycle, it is important to
distinguish between repairs and maintenance expenses and capital expenses
Management agreements can typically be terminated due to: - ANSWER
bankruptcy of either party, material breach of contact by either party,
condemnation
Employees are usually - ANSWER employees of the manager, but paid for by
the owner
Answers
What makes the hotel industry one of the most complex and specialized
types of real estate? - ANSWER Hotel owners generally bear the economic
risk of the underlying business
Which of the following is not part of the initial screening of a hotel property
for purchase? - ANSWER Hiring physical due diligence experts
Comparative statement analysis is also known as - ANSWER Horizontal
analysis and variance analysis
Alfredo borrows a loan of $100,000 for his new restaurant at 8% for 5 year
with a 4 point up-front clause. What is the effective amount borrowed for
this loan - ANSWER 96,000
To be professional in negotiations means all of the following except: -
ANSWER always be in a suit and tie
Which is an activity that does not typically take place at the closing of a
transaction? - ANSWER none of the above
Collaterals and guarantees are all of the following except - ANSWER
something a borrower would want to include when negotiating
The following are all combinations and/or part of a project team except -
ANSWER all of the individuals involved and not the firms
Which of the following is not part of the initial screening of a hotel property
, for purchase? - ANSWER hiring
Hotel owners typically are responsible for providing - ANSWER land,
building, furnishing and equipment
Which of the following is not usually specified regarding financial reporting -
ANSWER who prepares the reports
Which of the following is not a potential issue in ongoing hotel management
agreements - ANSWER opportunities for owner and manager to add
additional properties
Which fees are typically paid pursuant to a management agreement -
ANSWER base management fee, incentive management, accounting services
fee
Which of the following is typically not charged to owners by management
companies - ANSWER corporate overhead fee
Why is the concept of useful life important to the capital planning process? -
ANSWER each component of a hotel has its own life cycle, it is important to
distinguish between repairs and maintenance expenses and capital expenses
Management agreements can typically be terminated due to: - ANSWER
bankruptcy of either party, material breach of contact by either party,
condemnation
Employees are usually - ANSWER employees of the manager, but paid for by
the owner
