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CHIA Exam Review Question And
Answers
Most of the entities below are classified as "Chains". Which one is a "Parent Company" consisting of multiple chains? Hampton Inn Courtyard Starwood Hotels and Resorts Holiday Inn Express Correct Answer: Starwood Hotels and Resorts Which is a true statement about Parent Companies? Parent Companies and the related chains have changed over time Parent Companies must consist of no more than five chains Parent Companies can only consist of chains in a single Scale Parent Companies can only have hotels in a single country Correct Answer: Parent Companies and the related chains have changed over time What are the three different operation types? Corporate, Managed, Independent Managed, Franchise, Independent Managed, Clustered, Independent Corporate, Franchise, Independent Correct Answer: Corporate, Franchise, Independent Which is a true statement about independent hotels? Independent hotels are not affiliated with a specific chain Chain hotels outnumber independent hotels in every country of the world Independent hotels are mostly Luxury Class hotels in Urban Locations with more than 150 rooms Independent hotels may never be managed by an outside entity Correct Answer: Independent hotels are not affiliated with a specific chain which is a true statement about Management Companies? Management companies have contracts where they receive payment for their services and /or some portion of profits Management companies may manage only one chain Management companies will always own the hotels they manage Management companies serve the exact same role as asset management companies Correct Answer: Management companies have contracts where they receive payment for their services and /or some portion of profits
which is a true statement regarding geographic categorization? STR geographic categories are limited to North America STR uses the UNWTO definitions when it comes to recognizing countries General Managers of hotels do not need to know geographic categories The hotel industry uses seven continents to categorize hotels Correct Answer: STR uses the UNWTO definitions when it comes to recognizing countries Which is a true statement regarding markets? Markets include hotels that are in big cities, not rural areas A country would never have more than 100 markets and never have less than 2 markets No market will ever cross country boundaries There is another name for markets outside the U.S. Correct Answer: No market will ever cross country boundaries Which two geographic categories are the most important for a hotel GM? region and market market and Tract/sub-market Region and Tract/sub-market country and Tract/sub-market Correct Answer: Market and Tract/Sub-market In descending order of geographic size, which option below is correct? Continent, Sub-continent, Country, Tract/Sub-market, Market Continent, Country, Sub-continent, Tract/Sub-market, Market Continent, Sub-continent, Market, Country, Tract/Sub-market Continent, Sub-continent, Country, Market, Tract/Sub-market Correct Answer: Continent, Sub-continent, Country, Market, Tract/Sub-market Markets and tracts are created based on what two determining factors? geographic size and population geographic size and participation number of hotels and participation number of hotels and population Correct Answer: number of hotels and participation Which is a true statement regarding Tracts? Tracts are referred to as Sub-markets outside of North America Tracts are never used to represent a city in rural marktes Tracts are geographic sub-divisions of a Region A country will never have more than 100 Tracts Correct Answer: Tracts are referred to as Sub-markets outside of North America
property level for an individual versus their competitive set corporate level for a hotel company, for example one brand versus others geographic level for tourism organizations, for example city versus comparable cities Correct Answer: all of the above Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes? Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various pricing decisions Comp sets can be used in management contracts for performance requirements Comp sets can have an effect on a general managers compensation Correct Answer: all of the above are examples of how comp sets are used the four key considerations when creating a competitive set are? Correct Answer: Participation, proximity, pricing an dproduct All of the following are good reason for a hotel to have an additional competitive set, except which one? Correct Answer: have one set that you can easily beat and another which is a realistic target When can a competitive set be created? Correct Answer: A competitive set may be created while the hotel is under construction who creates a competitive set for a chain hotel? Correct Answer: It is a joint effort involving many stakeholders what is a valid rule related to creating a competitive set? Correct Answer: when percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded what is a reverse comp set? Correct Answer: Properties that name your hotel in their competitive set when can a competitive set be changed? Correct Answer: At any time, although many wait until the beginning of the year which is NOT a valid rule related to changing a competitive set? Correct Answer: A single hotel may be added to a competitive set at any time The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source? Correct Answer: Uniform System of Accounts for the Lodging Industry
what is the average number of hotels in a competitive set? Correct Answer: between 5 and 6 which statement is true regarding raw data that is submitted to STR? Correct Answer: the majority of data is exported from the hotel company systems which is true regarding the type of performance data (supply,Demand, Revenue) that STR receives? Correct Answer: Daily and monthly only You receive your monthly STAR and find that it includes weekday and weekend performance, what days are included in "weekday"? Correct Answer: Sunday thru Thrusday In which of the following situations will occupancy increase? Correct Answer: Supply decreases 10% and demand decreases 5% which statement is true regarding RevPAR? Correct Answer: It can be thought of as a combination of Occupancy and ADR which one of the following statements is accurate regarding "sufficiency" as it related to competitive set data? Correct Answer: the sufficiency rules are in place to protect the confidentiality of the data key performance indicators (KPI) for the competitive set (for example the average occupancy) are: Correct Answer: always based upon the aggregated raw data of each member of the competitive set when you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was $90. what can you tell? Correct Answer: Your ADR was $ higher than the average of all of hte members of the competitive set what happens when there is a non-reporting hotel in a competitive set? Correct Answer: the comp set average is calculated based upon the reporting hotels when you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do you know? Correct Answer: the RevPAR index will be in the neighborhood of 100 when you receive your STAR report, you see that your RevPAR indez was 90 this year compared to 80 last year. What do you know for sure? Correct Answer: your hotel would have a positive RevPAR Percent Change when you receive your STAR report you see that your ADR Rank for the current month is 3 of 7". what do you know? Correct Answer: Your hotel has the 3rd highest ADR among the members of your competitive set
the line graph at the top of the competitive set report in a monthly STAR report shows what? Correct Answer: Index values for Occupancy, ADR and RevPAR the competitive set report in a monthly STAR report shows what information? Correct Answer: 18 months of monthly data and 3 years of YTD, running 3-month, and running 12 - month data what best describes performance of your hotel over the last six months? Correct Answer: your hotel's occupancy Rank has consistently been 2 of 5 what is an accurate statement regarding the day of week and weekday/weekend tab in the monthly STAR report? it shows all the key performance indicators for all four time periods for the property and the comp set. it shows data by every day of the week, as well as a weekday and weekend subtotal it is a very valuable tab and can be used to find areas of improvement Correct Answer: all of the above the "weekly performance at a glance" tab on the weekly STAR report displays what information? Correct Answer: detail daily data for every day of the prior week a weekly total running 28-day data the "perspectives" tabs of the weekly STAR report show all but the following information? Correct Answer: monthly performance numbers for thelast 3 months the "daily data for the month" tab on the weekly STAR report displays what information? Correct Answer: provides a running MTD total based upon daily data shows KPIs for the subject property and the competitive set for each day of the current month displays graphs of index values for every day of the current month what is not a accurate statement regarding the differences between STAR reports, Ad- hoc industry reports, and destination reports? Correct Answer: hotels and hotel companies cannot obtain Ad-hoc industry reports or destination reports what is a rule related to requesting Trend report? Correct Answer: you must select four or more participating hotels a single hotel may account for a maximum of 40 % of the participating room supply If you request multiple trend reports, the hotels you have selected must differ by more than one participating hotel on subsequent trend request what is not a valid way to select hotels for trend report? Correct Answer: ask STR to select the best performing hotels in an area
trend reports are available in which currency? Correct Answer: any currency which is NOT a valid type of data that you can request to include on a Trend Report, in addition to monthly data? Correct Answer: Weekly data Several tabs in the Trend Report display columns with Census Props and Rooms and STAR participation. Which is an accurate statement about this data? Correct Answer: these columns show total number of hotels and roms for the selected group of hotels, as well as the percent of those rooms that submit performance data to STR what are the four phases for hotel projects in the development pipline? Correct Answer: in-construction, final planning, planning and unconfirmed what is a true statement regarding the changes to existing supply tab of a pipeline report? Correct Answer: it shows the net gain or loss of hotel rooms over time by brand and scale It shows changes to existing supply for two time periods, last 12 months and last 60 months and it can be used to analyze the conversion activity in a specific area what is an accurate statement regarding the construction pipeline detail tab of a pipeline report? Correct Answer: the construction pipeline tab lists each hotel under construction or in planning with detailed projecct information some projects are identified as :unaffiliated", which can mean that the hotel will be an independent or the chain has not been decided upon yet often times owner and architect information are provided for a project a HOST or profitability report displays what type of information? Correct Answer: profit and loss information, including revenue, expenses and profit accounts the HOST report displays data based upon what time period? Correct Answer: Annual A HOST or profitability report display data for how many years? Correct Answer: Two what is NOT a true statement regarding a destination report? Correct Answer: reports are available only on a monthly basis, but not weekly what is true about a multi-segment tab of a destination report? Correct Answer: you can select several industry segments and their data will appear you can select "comparable markets" to track the performance of other cities that you feell you compete with the tab will display numbers for two different time periods, such as current month and YTD
