HM 380 Hotel Management Exam 1

What is the greatest difference between full-service hotels and limited service hotels?

A. The selling price of the rooms
B. The size of the hotels
C. The food and beverage services offered by the hotel
D. The location of the hotels

C. The food and beverage services offered by the hotels
Which of the following is the formula hoteliers use to calculate occupancy rate?

A. Rooms sold/rooms available
B. Rooms available/rooms sold
C. Rooms revenue/rooms sold
D. Rooms sold/rooms revenue

A. Rooms sold/rooms available
Which of the following is the formula hoteliers use to calculate RevPAR?

A. Total rooms revenue X occupancy rate
B. Total rooms available X occupancy rate
C. Total rooms sold X occupancy rate
D. ADR X occupancy rate

D. ADR X occupancy rate
What would be the occupancy for a hotel that has 200 rooms on a day in January in which it sold 100 rooms and received total rooms revenue of $17,000?

A. $170.00
B. 50%
C. 17%
D. 200%

B. 50%
A limited (select) service hotel property that is marketing to guests seeking a moderately priced stay for one week or longer is known as:

A. A convention hotel
B. A conference hotel
C. A resort
D. An extended-stay hotel

D. An extended-stay hotel
Last night, a State College hotel sold all 85 of their hotel rooms and generated total revenue from room sales of $10,200. The ADR for the hotel is:

A. $90
B. $100
C. $120
D. $130

C. $120
If a hotel has an ADR of $110 and an occupancy rate of 80%, the RevPAR for the hotel is:

A. $78
B. $88
C. $98
D. $108

B. $88
Partners in the lodging industry include:

A. Transportation industry
B. Travel agents
C. Tour operators
D. All of the above

D. All of the above
A limited (select) service hotel usually does not offer:

A. Housekeeping services
B. Internet services
C. Room service
D. Breakfast

C. Room service
According to the American Hotel & Lodging Association (AH&LA), more than 50% of all hotel guests are:

A. Leisure travelers
B. Business travelers
C. People traveling for family/personal reasons
D. None of the above

B. Business travelers
What is true about an investor in a hotel?

A. The investor must be a corporation
B. The investor must manage the hotel
C. The investor must be an individual
D. The investor seeks a return on their investment

D. The investor seeks a return on their investment
Which term refers to the fact that the decline in value of a hotel asset is generally tax deductible?

A. Depreciation
B. Appreciation
C. Accelerations
D. Mollification

A. Depreciation
What is one reason that a hotel owner might consider hiring a hotel management company?

A. Increased control over selection of hourly employees
B. To gain day-to-day control over operation decisions made in the hotel
C. Improved overall management of the hotel
D. Freedom from the hotel’s operating liabilities

C. Improved overall management of the hotel
What is the term used to identify those who purchase the rights to use a hotel’s brand name?

A. General manager (GM)
B. Franchisee
C. Brand manager
D. Franchisor

B. Franchisee
What is the term used to identify those who sell the rights to use a hotel’s brand name?

A. General manager (GM)
B. Franchisee
C. Brand manager
D. Franchisor

D. Franchisor
An owner invests $5,000,000 in a hotel property. In the first year, that hotel makes an after-tax profit of $600,000. What is the return on investment (ROI) for the owner?

A. 10%
B. 12%
C. 15%
D. 20%

B. 12%
A hotel management company can have an ownership stake in:

A. None of the hotel it manages
B. Some of the hotel it manages
C. All of the hotel it manages
D. All of the above

D. All of the above
When a hotel is changing the brand of the property, it is known as a:

A. Brand standard
B. Conversion
C. Repossession
D. Buy-out

B. Conversion
Who will most often have the greatest detailed knowledge of guest likes and dislikes?

A. Supervisors
B. Line-level employees
C. Managers
D. Owners

B. Line-level employees
Which is an example of a consumer-generated content Web site?

A. www.hilton.com
B. www.tripadvisor.com
C. www.jetblue.com
D. www.ahla.com

B. www.tripadvisor.com
Which of the following is essential if the employees are to effectively resolve guest problems as they occur?

A. A quick orientation process
B. Clear lines of authority
C. Conflict-avoidance training
D. The authority to make key decisions

D. The authority to make key decisions
A hotel that generated $200,000 in guest room rental in a market where travelers spend $1,000,000 per year would have a market share of:

A. 10%
B. 20%
C. 30%
D. None of the above

B. 20%
A hotel owner who hires a hotel management company may face potential drawbacks that include:

A. Little to no input of hiring decisions
B. Turnover of talented managers
C. Cost associated with the management company’s errors must be assumed by the owner
D. All of the above

D. All of the above
What is the management term for granting authority to employees to make key decisions within their assigned areas of responsibility?

A. Line responsibility
B. Empowerment
C. Staffing
D. Zero defects

B. Empowerment
Which of the following best describes a “moment of truth”?

A. It needs to be addressed by management only if it is negative.
B. It is easily controlled and anticipated.
C. It always involves some personal interaction with the hotel’s staff
D. In influences a guest’s total perception of a hotel visit

D. It influences a guest’s total perception of a hotel visit
The relationship between price paid and the quality of the products & services received is known as:

A. Value
B. Commodity
C. Mission statement
D. Zero defects

A. Value
In order to maintain a service priority at a hotel, the management team must:

A. Provide effective orientation & training
B. Emphasize continuous quality improvement
C. Recruit & select service-minded employees
D. All of the above

D. All of the above
One of the most significant differences in the staffing of full-service hotels and limited (select) service hotels is:

A. Pay rates
B. Employee-to-guest ratio
C. Length of work shifts
D. None of the above

B. Employee-to-guest ratio
If a hotel has 40 employees and 10 of those employees leave, the turnover rate is:

A. 15%
B. 20%
C. 25%
D. 30%

C. 25%
Which job at a hotel is most likely to require a license?

A. Front desk agent
B. Guest room attendant
C. Maintenance engineer
D. All of the above

C. Maintenance engineer
Which management function would include the identification of an organization’s long-range goals?

A. Organizing
B. Planning
C. Controlling
D. Directing

B. Planning
Which management function refers to the process of supervising staff members in the workplace?

A. Directing
B. Organizing
C. Controlling
D. Facilities

A. Directing
Which of the following is an example of a management principle?

A. Guest check-in will be at 3:00 pm.
B. The good of the organization takes precedence over that of any individual organization member.
C. Management is a science.
D. Management is an art.

B. The good of the organization takes precedence over that of any individual organization member.
What is true about employees working in larger hotels?

A. They work in positions requiring only minimal skills
B. Their hotels are unlikely to have a formal organizational chart
C. They work with very few supervisors
D. They work in highly specialized postions

D. They work in highly specialized positions
In which type of properties would employees most likely be multi-skilled and perform a variety of different tasks?

A. Larger full-service hotels
B. Smaller cruise ships
C. Smaller limited-service hotels
D. Larger resort hotels

B. Smaller limited-service hotels
Achieving consistently low scores of Quality Assurance (QA) inspections would most likely result in a hotel:

A. Being repossessed by a bank
B. Increasing its revenue levels
C. Improving its relationship with its franshisor
D. Being dropped as a brand franchisee

D. Being dropped as a brand franchisee
Which of the following would most likely be a part of a hotel GM’s community activity efforts?

A. Hosting and attending citywide charity events
B. Serving on a regional marketing committee for the property’s brand
C. Providing owners with long-range budget forecasts
D. Creating a preventive maintenance checklist for guestrooms

A. Hosting and attending citywide charity events
Which of the following would be classified as a FF&E expense in a hotel?

A. The purchase of an adjoining piece of real estate for future hotel expansion
B. The cost of a sales manager’s attendance at a revenue management conference
C. New lights in the bath area of the hotel’s guestrooms
D. The repaving of the hotel’s parking lot

C. New lights in the bath area of the hotel’s guestrooms
If a franchised hotel is owned by one entity, but managed by a large hotel management company, who would most likely supervise the hotel’s general manager?

A. The hotel’s owners
B. The hotel’s brand managers
C. A regional manager employed by the management company
D. The hotels investors

C. A regional manager employed by the management company
Which of the following is a reason that brand managers of a hotel might also become investors in it?

A. To serve as a management company while the hotel is being sold
B. To reduce the number of properties operating under the brand name
C. To compete with their other franchisees
D. To encourage competition within the brand

A. To serve as a management company while the hotel is being sold
What would be the most likely action of a general manager interested in employing a participative management style?

A. Adopting bureaucratic leadership methods
B. Asking for employee input in decision making
C. Increasing employee compensation quarterly
D. Ignoring written hotel rules and regulations if he or she felt it necessary

B. Asking for employee input in decision making
Which of the following is most important to the effectiveness of a departmental work team?

A. Being guest service oriented
B. The fair negotiation of workplace rules
C. Being open to every hotel employee
D. Picking a strong leader

A. Being guest service oriented
Which of the following leadership styles is most effective when used with experienced employees by supervisors who have an interest in fostering a culture of cooperation?

A. Autocratic
B. Democratic
C. Laissez-faire
D. Bureaucratic

B. Democratic
What is the purpose of helping employees plan a career ladder?

A. To encourage employees to consider a long-term career in the hospitality industry
B. To reduce wages
C. To eliminate the need for negative discipline
D. To train employees to become general managers

A. To encourage employees to consider a long-term career in the hospitality industry
What is the industry term for activities designed to attract qualified applicants for a hotel’s vacant management and non-management positions?

A. Recruitment
B. Retention
C. Compensating
D. Tracking

A. Recruitment
Which of the following is most important for a productive and positive work environment?

A. All workers are within the same age range
B. The workforce is accepting of culturally diverse members
C. All workers think and act alike
D. The workforce is very highly paid

B. The workforce is accepting of culturally diverse members
At-will employment means that an employer can decide to dismiss an employee because the employee:

A. Has become pregnant and can no longer work
B. Has reaches the age of 65
C. Has a bad attitude in the opinion of the employer
D. Has religious preferences different from those of the majority of the workers in the hotel

C. Has a bad attitude in the opinion of the employer
When should a hotel provide an employee a copy of the hotel’s employee handbook?

A. During the interview process
B. Upon termination of the employee
C. After the employee has successfully completed three months on the job
D. During employee orientation

D. During employee orientation
What is the industry term used to describe a carefully planned series of corrective actions, each increasing in severity and designed to encourage employees to follow established work rules?

A. Negative reinforcement
B. Arbitrary discipline
C. Progressive discipline
D. Positive reinforcement

B. Progressive discipline
Which of the following leadership styles is likely the best on the use in an emergency situation such as a fire or bomb threat?

A. Autocratic
B. Democratic
C. Laissez-faire
D. Bureaucratic

A. Autocratic