CHIA Exam HB 473

Most of the entities below are classified as "Chains". Which one is a "Parent Company" consisting of multiple chains?

Accor Hotels

Which is a true statement about Parent Companies?

Parent Companies and the related chains have changed over time

What are the three different operation types?

Chain Management, Franchise, Independent

Which is a true statement about independent hotels?

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

Which is a true statement regarding geographic categorization?

STR uses the UNWTO definitions when it comes to recognize countries

What is a true statement regarding markets?

No market will ever cross country boundaries

In descending order of geographic size, which option below is correct?

Continent, Sub-Continent, Country, Market, Submarket

Which two geographic categories are the most important for a hotel GM?

Market and Submarket

Markets and Submarkets are created based on what two determining factors?

Number of Hotels and participation

Which is a true statement regarding submarkets?

A submarket may represent a small city in a rural market

Changes to how Markets and Tracts are geographically defined are made how often

Annually

Which two non-geographic categories are the most important for a hotel GM?

Scale and Class

How many Scale categories are there compared to Class categories?

7 scale categories and 6 scale categories

Which one of the following is an accurate statement regarding Scale and Class groups and a single chain?

A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world

Which one of the following is an accurate statement regarding Class groups?

Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market

Benchmarking in the hotel industry takes place at what level?
A) Property level for an individual hotel versus their Competitive Set
B) Corporate level for a hotel company, for example one brand versus others
C) Geographic level for tourism organizations, for example city versus comparable cities
D) All of the above levels

All of the above levels

Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes?
a) Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various pricing decisions
b) Comp sets can be used in management contracts for performance requirements
c) Comp sets can have an effect on a general managers compensation
d) All of the above are examples of how comp sets are used

All of the above are examples of how comp sets are used

The four key considerations when creating a Competitive Set are?

Participation, Proximity, Pricing, Product

All of the following is a good reason for a hotel to have an additional competitive set, except which one?

Have one set you that you can easily beat and another which is a realistic target

When can a competitive set be created?

A competitive set may be created while the hotel is under construction

Who creates a competitive set for a chain hotel?

It is a joint effort involving many stakeholders

What is the average number of hotels in a competitive set?

Between 5 and 6

Which is a valid rule related to creating a competitive set?

When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded

When can a competitive set be changed?

At any time, although many wait until the beginning of the year

Which is NOT a valid rule related to changing a competitive set?

Any 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?

Uniform System of Accounts for the Lodging Industry

Which statement is true regarding raw data that is submitted to STR?

The majority of data is is exported from the hotel company systems

Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives?

Daily and monthly only

You receive your monthly STAR and find that it includes weekday and weekend performance, what days are included in "weekday" in most parts of the world?

Sunday thru Thursday

In which of the following situations will occupancy increase?

Supply decreases 10% and demand decreases 5%

Which statement is true regarding RevPAR?

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?

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:

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?

Your ADR was $10 higher than the average of all of the members of the competitive set

What happens when there is a non-reporting hotel in a competitive set?

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?

The RevPAR index will be in the neighborhood of 100

When you receive your STAR report, you see that your RevPAR index was 90 this year compared to 80 last year. What do you know for sure?

Your hotel will have a positive RevPAR index 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?

Your hotel has the 3rd highest ADR among the members of your competitive set

When talking about U.S. Industry Data, which is an accurate explanation of "modeled data"?

Modeled Data is derived by using actual data from reporting hotels to estimate performance for non-reporting hotels

The number of Rooms Available in a total market can change over time due to what four factors?

New hotel openings, Hotel closings, Hotel room additions, and Hotel room drops

What is the minimum number of reporting hotels for an industry segment to be considered "sufficient"?

four

Hotels and hotel companies outside the U.S. may receive STAR reports in what currency?

Local Currency, US dollars or a third currency (the company gets to decide

Modeled data is used in which country?

United States

How are exchange rates handled when it comes to multiple time periods, e.g. YTD, Running 3 month or Running 12 month?

The exchange rate for each individual month, specifically the last day of that month, is used

Which one of the following is a non-geographic category shown on the STAR report?

Class

What information is never included on a STAR report?

Performance data for individual competitors

Which statement is true regarding the format and timing of a STAR Report?

They are normally generated in Excel

Which statement is true regarding the industry data that a hotel may see on a STAR report?

North America hotels will see industry data for Market, Market Class, Submarket and Submarket Scale

Which one of the following is an accurate statement regarding Segmentation and Additional Revenue data on the STAR Reports?

The most common example of Contract Rooms and Revenue is airline crew business.

Which one of the following is an accurate statement regarding the performance at your hotel?

Your Occupancy Index (MPI) has surpassed 100 in each of the four time periods shown

The line graph at the top of the Competitive Set Report in a monthly STAR report shows what?

Index values for Occupancy, ADR and RevPAR

The Competitive Set Report in a Monthly STAR Report shows what information?

18 months of monthly data and 3 years of YTD, Running 3-month, and Running 12-month data

Which of the following statements best describes performance of your hotel over the last six months?

Your hotel's Occupancy Rank has consistently been 2 of 5

Which is an accurate statement regarding the Day of Week and Weekday/Weekend tab in the Monthly STAR report?
a. It is a very valuable page and can be used to find areas of improvement.
b. It shows all the Key Performance indicators for all four time periods for the property and the comp set.
c. It shows data by every day of the week, as well as a Weekday and Weekend subtotal.
d. All of the above

All of the above

Based on the information provided above, which one of the following is an accurate statement?

The Weekend Occupancy for your hotel is consistently higher than your Competitive Set for all time periods

The "Weekly Performance At A Glance" tab on the Weekly STAR report displays what information?
a. Detail daily data for every day of the prior week
b. Running 28-day data
c. A weekly total
d. All of the above

All of the above

Based upon the first nine days of the month, what can you determine about your hotel's Occupancy performance?
a. Your hotel had the highest Occupancy in the Competitive Set every day.
b. The Competitive Set's Occupancy was significantly below your hotel's occupancy for the first three days of the month.
c. The Competitive Set's Occupancy improved year-over-year every day.
d. The Competitive Set's ADR was well above your hotel's ADR on the latest Friday and Saturday.

The Competitive Set's Occupancy was significantly below your hotel's occupancy for the first three days of the month.

Which is NOT an accurate statement regarding the differences between STAR Reports, Ad-hoc Industry Reports, and Destination Reports?

Hotels and hotel companies cannot obtain Ad-Hoc Industry reports or Destination Reports.

Which of the following is a rule related to requesting Trend report(s)?a. If you request multiple Trend reports, the hotels you have selected must differ by more than one participating hotel on subsequent Trend request.
b. A single hotel may account for a maximum of 40 percent of the participating room supply (in NA, 50% in non-NA).
c. You must select four or more participating hotels.
d. All of the above are rules related to requesting a Trend Report

All of the above are rules related to requesting a trend report

Which of following is NOT a valid way to select hotels for a Trend Report?

Ask STR to select the best performing hotels in an area

Trend reports are available in which currency?

Any currency

Several pages in the Trend Report display columns with Census Props and Rooms and STAR participation. Which is an accurate statement about this data?

These columns show the total number of hotels and rooms for the selected group of hotels, as well as the percent of those rooms that submit performance data to STR.

Which one of the following is an accurate statement?
A. The occupancy for the year-to-date period ending September 2012 is down from the same period in 2011
B. The ADR for the first eight months of 2013 was up from the same period in 2012
C. The September YTD occupancy for both 2013 and 2012 was exactly the same
D. The RevPAR in every month of 2013 was greater than the same months in 2012

he ADR for the first eight months of 2013 was up from the same period in 2012.

What are the four phases for hotel projects in the development pipeline?

In construction, Final Planning, Planning and Unconfirmed

Which one of the following is an accurate statement regarding Supply growth over the last 5 years?
A. The Upper Upscale segment has the largest decrease in supply
B. The Upscale segment experienced a significant increase in supply
C. The Luxury Scale group experienced a significant decrease in Supply
D. The Independent supply increased significantly from 2010 to 2013

The upscale segment experienced a significant increase in supply

Which two chain scales will probably experience the largest Supply growth in the near future?
A. Upper Upscale and Midscale
B. Upscale and Upper Midscale
C. Upper Midscale and Midscale
D. It is impossible to tell from the information provided

Upscale and Upper Midscale

Which is a true statement regarding the Changes to Existing Supply tab of a Pipeline Report?
a. It shows the net gain or loss of hotel rooms over time by brand and scale.
b. It shows changes to existing supply for two time periods, last 12 months and last 60 months
.c. It can be used to analyze the conversion activity in a specific area.
d. All of the above are true statements.

All of the above are true statements

Which Upscale Brand experienced the most significant net change in room supply over the last 12 month period?
A.Doubletree
B.Springhill Suites
C.Crowne Plaza
Courtyard

Crowne Plaza

A HOST or Profitability report displays what type of information?

Profit and Loss information, including revenue, expenses and profit accounts

The HOST Report displays data based upon what time period?

Annual

A HOST or Profitability report display data for how many years?

Two

Which is NOT a true statement regarding a Destination Report?

Reports are available only on a monthly basis, but not weekly

What statement is true about a Multi-Segment tab of a Destination Report?
a. You can select several industry segments and their data will appear
b. You can select "comparable markets" to track the performance of other cities that you feel you compete with
c. The tab will display numbers for two different time periods, such as Current Month and YTD
d. All of the statements above are true

All of the statements above are true