Deck 4: Lodging

Question 1

Who, due to a disappointing experience while traveling with family, developed the worlds largest lodging enterprise?
• Bill Marriott
• Howard Johnson
• Kemmons Wilson
• Caesar Ritz

Answer 1

• Kemmons Wilson

Question 2

Franchisee benefits include all of the following except:
• National advertising
• Centralized reservation system
• Discount franchise fees
• A set of plans for building

Answer 2

• Discount franchise fees

Question 3

Of the 60,000 properties inspected by AAA only _____________ percent were awarded the five diamond award.
• 10
• 15
• 27
• 32

Answer 3

• 27

Question 4

Management contracts became popular in the 1970's because:
• Up front fees were minor compared to franchises
• Maintaining quality standards was not required
• Little or no up front financing or equity was required
• Ownership reverted to insurance companies

Question 5

The largest lodging enterprise in the world is:
• Holiday Inns
• Sheraton
• Intercontinental Hotel Group
• Marriott

Question 6

Two major challenges of lodging franchising are avoiding financial failure by the franchisee and:
• Slow growth in the industry
• Decreased use of central reservation systems by guests due to increased availability of internet booking options
• Up-front fees are too high for potential franchisees
• Maintaining quality standards

Question 7

Two organizations that rate and classify hotels are Mobile Travel Guide and:
• American Automobile Association
• Yelp
• American Hotel and Lodging Association
• The Tourist Grading Council

Question 8

Hotels may be classified by a number of factors including location, price, and:
• Number of parking spaces
• Number of full-service restaurants
• Types of meeting rooms available
• Types of service provided

Question 9

Marriott builds a hotel for $34 million and sells it to an investment firm for $52 million. Marriott charges the investment firm 2-4% of gross revenues to operate the hotel. This type of transaction is known as a:
• Franchise agreement
• REIT
• Vacation ownership
• Management contract

Question 10

Which of the following is a benefit to the franchise company?
• The need to be careful in the selection of potential franchisees.
• Increased market share and recognition.
• Increased costs for negotiating volume discounts for franchisees.
• Requiring conformity to the franchise agreement.

Question 11

The majority of franchise growth is found in North America which hosts more than _____________ brand extensions and franchised hotel brands.
• 100
• 120
• 150
• 180

Question 12

The management contract typically allows for a hotel company to manage a property for:
• Perpetuity
• 5, 10, or 20 years
• As long as profits stay at 20% or more
• 2-3 years

Question 13

In this type of ownership, investors do not pay corporate income tax, distribute the majority of net income to shareholders and are publicly traded.
• Franchise agreement
• REIT
• Vacation ownership
• Management contract

Question 14

The average franchise fees range from _____________ percent of room revenue.
• 3-4
• 10-12
• 20-25
• 50-60

Question 15

Motel 6 got its name from:
• The lower number of floors in each operation
• The number of rooms on a floor
• The original cost of a room was $6
• The advertising company thought it was a catchy name

Question 16

The Hilton and Sheraton brands did not begin franchising until the:
• 1950's
• 1960's
• 1970's
• 1980's

Question 17

Hotels classified by location might include:
• City, resort, airport and freeway
• Luxury, all-suite, economy and budget
• Full-service, mid-scale, extended stay and limited service
• Spa, convention, casino and B&B

Question 18

Franchising hotels began in 1907 by:
• Howard Johnson
• Ritz-Carlton
• Holiday Inn
• Hyatt

Question 19

Franchising is a concept that allows hotels to:
• Expand rapidly by using other people's money
• Provide careful consideration to the location of new properties
• Provide tax benefits to investors
• Pay a fee based on a percentage of gross revenue to the owners

Question 20

Franchising trends include all of the following except:
• Slower growth in the lodging industry
• Expansion into smaller cities and foreign markets
• New markets located close to attractions
• Fresh looks

Question 21

Marriott builds a hotel and sells it for a generous profit. The hotel company runs the hotel for a set number of years and receives a fee for this service. This type of ownership is known as a __________ .

Question 22

__________ are lodging facilities where the owner lives on premises or nearby and provides memorable, attractive accommodations and breakfast.

Question 23

__________ is a concept that allows a company to expand more rapidly by using other peoples money.

Question 24

__________ differ from typical hotel properties because they offer the guest more space in the form of a lounge or kitchenette area.

Question 25

Economy or budget hotels became popular by focusing on
• Selling beds not meals or meetings
• Providing free continental breakfasts to guests
• Offering on-site laundry service
• Providing free Wi-fi and other in-room amenities to guests

Question 26

Due to the seasonality of resorts, one of the many challenges faced by managers is:
• Creating interesting buffet menus for adults and children
• Attracting, training and retaining competent staff
• Providing a variety of activities for all guests
• Competing with local hotels for guest business

Question 27

The __________ hotel industry is beginning to reshape the U.S. economy as a significant segment of the entertainment industry.

Question 28

Which of the following hotels has received all of the hospitality industry and consumer organization awards including the prestigious Malcolm Baldridge National Quality Award?
• Hyatt Hotels and Resorts
• Holiday Inns
• Marriott
• Ritz-Carlton

Question 29

Hotels classified by price would include:
• City, resort, airport and freeway
• Luxury, all-suite, economy and budget
• Full-service, mid-scale, extended stay and limited service
• Spa, convention, casino and B&B

Question 30

__________ hotels provide facilities to meet the needs of groups attending large meetings and expositions.

Question 31

Vacation ownership
• Is not popular today
• Is known for deceptive marketing practices
• Began in the French Alps in the 1960's and is one of the fastest growing segments of U.S. travel and tourism
• Is only popular in Europe and Australia

Question 32

Trading publicly and distributing about 95% of net income to shareholders, this type of ownership allows investors ease in getting in or out of the purchase rather easily: __________ .

Question 33

Airport hotels are
• Generally not full service
• Range from 200- 600 rooms with full service
• Face less competition than other hotels
• Are expensive and located in inconvenient locations

Question 34

Hotels classified by level of service would include:
• City, resort, airport and freeway
• Luxury, all-suite, economy and budget
• Full-service, mid-scale, extended stay and limited service
• Spa, convention, casino and B&B

Question 35

All of the following are trends in hotel development except:
• Safety and Security
• Globalization
• Sustainability
• Social networking

Question 36

Another step many hotels are taking to conserve resources includes replacing showerheads with low flow devices. These can save _____________ gallons of water for every 5 minutes of shower.
• 5
• 10
• 3
• 7

Question 37

Hotels that provide residences as well as rooms for guests to book are known as __________ .

Question 38

Lighting can account for _____________ to _____________ percent of commercial electricity consumption
• 10; 20
• 20: 30
• 30; 40
• 40: 50

Question 39

__________ properties represent 15 percent of total hotel rooms and have experienced tremendous growth.

Question 40

Casino hotels are different from other hotels because:
• They are family friendly
• They are only located in Las Vegas and Atlantic City
• They became popular due to several hit television shows
• They make more money from gaming than rooms

Question 41

In exploring the possibility of becoming a franchisee, what are five potential benefits?

Question 42

List and provide examples of the three ways in which hotels are classified.

Question 43

Three popular forms of ownership used in the lodging industry, which have helped in the rapid expansion of the industry are:

Question 44

The Greenbriar, Homestead, and Banff Springs Hotels provide picturesque views, excellent service and a variety of on-premise activities. They are known as __________ hotels.

Question 45

Describe the benefits and potential drawbacks of vacation ownership

Question 46

Explain the importance of sustainable lodging and list two steps a hotel can take to decrease their environmental impact.

Question 47

One of the more unusual hotels in the world is the __________ hotel where guests have a space of 7 feet by 7 feet including the bed and television.

Question 48

List and describe two unusual hotels found in the world.

Question 49

What are five factors involved in the growth of franchising?

Question 50

__________ tourism has become one of the fastest growing segments of the lodging industry.

Question 51

As one of the fastest growing segments of the industry, __________ offers consumers the opportunity to purchase a fully furnished accommodation in a variety of forms like weekly intervals or on a point based system.