Question 1

The best consideration in determining whether or not two hotels are competitive with each other is

Accepted Answer

A) their size 
B) the type of demand they accommodate 
C) the size of the rooms 
D) the visibility of the hotels

Question 2

Federal regulations now require appraisals to be commissioned by the

Accepted Answer

A) buyer. 
B) lender. 
C) seller. 
D) broker.

Question 3

If a hotel is located across the street from the hotel you are appraising, it should always be considered to be competitive.

Accepted Answer

A) True 
 B)False

Question 4

Rule of thumb approaches are not allowed to be used in hotel appraisals.

Accepted Answer

A) True 
 B)False

Question 5

The submarket analysis is one of the most important and distinguishing features of a hotel appraisal.

Accepted Answer

A) True 
 B)False

Question 6

A historical supply and demand analysis is

Accepted Answer

A) not relevant because the appraiser only worries about future events. 
B) a good starting point in order to make projections. 
C) all an appraiser needs to make effective projections. 
D) usually too time-consuming to include in the appraisal.

Question 7

Which of the approaches to value is generally considered to be the most difficult when appraising existing hotels?

Accepted Answer

A) direct capitalization approach 
B) sales comparison approach 
C) yield capitalization approach 
D) cost approach

Question 8

If a hotel has the highest average rate in the market it

Accepted Answer

A) is the rate leader in the market. 
B) usually has a high occupancy as well. 
C) has a high Revpar. 
D) is making a lot of money.

Question 9

Most hotel appraisals emphasize the income capitalization approach.

Accepted Answer

A) True 
 B)False

Question 10

A good definition of real estate is the land, building, and everything in it.

Accepted Answer

A) True 
 B)False

Question 11

The most important information to gather from competitive hotels is the average rate and occupancy information.

Accepted Answer

A) True 
 B)False

Question 12

Which approach uses one year's stabilized income to determine value?

Accepted Answer

A) yield capitalization 
B) sales comparison 
C) rooms revenue multiplier 
D) direct capitalization

Question 13

The highest form of real estate ownership is

Accepted Answer

A) fee simple. 
B) leasehold. 
C) leased fee. 
D) none of the above.

Question 14

The terminal capitalization rate is

Accepted Answer

A) the same as an equity yield rate. 
B) usually higher than the overall capitalization rate. 
C) usually lower than the overall capitalization rate. 
D) used to discount the NOI stream.

Question 15

Which of the following would have the greatest potential impact on the hotel?

Accepted Answer

A) an increase in the population 
B) the construction of a new office building housing a new local law firm 
C) a major employer leaves the market area 
D) an increase in the number of residential building permits

Question 16

When you have a fee simple interest in a property, which of the following do you NOT own?

Accepted Answer

A) the minerals under the ground 
B) the air space above the ground 
C) the ground and everything permanently attached to it 
D) none of the above

Question 17

If a hotel has 250 rooms and the competitive market has a total of 1,000 rooms, the hotel's fair share is:

Accepted Answer

A) 100 percent. 
B) 50 percent. 
C) 25 percent. 
D) cannot tell from information given.

Question 18

Many hotel appraisals in the past have underestimated the true replacement cost of furniture, fixtures, and equipment.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT one of the stages in the neighborhood life cycle?

Accepted Answer

A) growth 
B) re-birth 
C) stability 
D) decline

Question 20

The organization responsible for the majority of appraiser education is the United States Appraisal Corporation.

Accepted Answer

A) True 
 B)False

Exam 11: An Introduction to Hotel Valuation

The best consideration in determining whether or not two hotels are competitive with each other is

Federal regulations now require appraisals to be commissioned by the

If a hotel is located across the street from the hotel you are appraising, it should always be considered to be competitive.

Rule of thumb approaches are not allowed to be used in hotel appraisals.

The submarket analysis is one of the most important and distinguishing features of a hotel appraisal.

A historical supply and demand analysis is

Which of the approaches to value is generally considered to be the most difficult when appraising existing hotels?

If a hotel has the highest average rate in the market it

Most hotel appraisals emphasize the income capitalization approach.

A good definition of real estate is the land, building, and everything in it.

The most important information to gather from competitive hotels is the average rate and occupancy information.

Which approach uses one year's stabilized income to determine value?

The highest form of real estate ownership is

The terminal capitalization rate is

Which of the following would have the greatest potential impact on the hotel?

When you have a fee simple interest in a property, which of the following do you NOT own?

If a hotel has 250 rooms and the competitive market has a total of 1,000 rooms, the hotel's fair share is:

Many hotel appraisals in the past have underestimated the true replacement cost of furniture, fixtures, and equipment.

Which of the following is NOT one of the stages in the neighborhood life cycle?

The organization responsible for the majority of appraiser education is the United States Appraisal Corporation.