tAccommodation is the primary product of the hotel.

  It is its main revenue center. A general manager

oversees its whole operation and an executive department is run by key executive managers who
spearhead the different departments of the hotel.  

A hotel is made up of different revenue centers.  It has different products and services that are being
offered to guests every day.  All the departments contribute seamless service, dedication, and quality
commitment to producing excellent products.  Furthermore, hotels are covered with cooperation by
large and diverse manpower who are to work together with topmost quality.

Hotels are glamorous in nature and even experienced hoteliers are awed by their refined beauty and
character.  Whether the hotels are under affiliation of chains or independent, their main purpose is both
to serve and upgrade the society while earning profit.  Mainly hotels are businesses, with equity
appreciation or depreciation they often make or lose money than through operations. Hotels are mostly
synonyms of luxury but to most, they must have the basic facilities. Hotels are known to be the home
away from home are meant to deliver all its comforts.

HOTEL FUNCTIONS

The hotel primarily serves as:

 Lodging accommodations

 Revenue centers

 Cost centers

 Serve and enrich society, and

 Ensure profit for the owners.

1. Introduction to Hotel and its Functions

1.1. Hotel Departments

Hotels are headed by General Managers (GM) and sometimes are referred to as Resident Managers
(who reside in the hotel).  Hotel GMs is the leader of the hotel and they have a ton of responsibilities.
Between keep guests satisfied and returning, he is also ultimately responsible for the operations of the
hotel and its employees' quality performance. As such, the GM is held accountable for the hotel's
profitability and he must provide owners with a reasonable return on investment.  With all these, the
GM not only focuses on leading and operating the hotel departments but also on aspects of the
infrastructure, from room atmosphere to security.
A hotel is comprised of the different departments or sections:

■Rooms Division
The function of Rooms Division are as follows:

 Handles reservations and room inquiries via calls

 Handles the telephone systems

 Responsible for all check-ins and checkout activities

 Handles bellperson and concierge duties

 Responsible for cleaning guestrooms and other areas.

■Food & Beverage

The Food and Beverage department is:

 Responsible for all food and beverage products provided and served in the hotel's dining rooms

 Room service, banquet functions, and employee food service are additional duties

■Sales & Marketing 

The Sales and Marketing:

 Help sell rooms and food & beverage services

 Involved in developing  promotional packages and advertising

 Generating publicity

 Making contact with prospective clients, travel agencies, etc.

■Accounting 

The Accounting Department is:

 Responsible for various accounting/recordkeeping functions

 Income collection

 Product purchasing and storage

■Engineering & Maintenance

  Responsible for the property's preventive maintenance program

 Making repairs to the hotel's building and its contents

 For implementing the hotel's ongoing energy management program

■Security

The Security Department:

 Helps protect employees and guests

 Protecting hotel properties

 Involved in developing and implementing procedures for fires, bomb threats, and natural
disasters.

■Human Resources

The Human Resources Department is: 

 Responsible for recruitment and selecting the most qualified personnel

 Administers insurance and other benefit programs

 Handles personnel-related complaints

 Assures compliance with labor laws

 Involved with labor-union matters

 Administers the property's Wage and Salary Compensation Program

■Others : 

 Retail Outlets

 Recreation Facilities

 Conference Centers

 Casinos
2. Rooms Division

Functions of Rooms Division:

 Responsible for the front desk and all of its check-in and check-out activities

 Handles reservations

 Responsible for hotel telephone systems

 Handles bell services and concierge duties

 Housekeeping is responsible for cleaning guestrooms and other public access 

 Responsible for the security of all guests, employees, and all hotel facilities.

The rooms division director is held responsible by the GM for the efficient  and effective leadership and
operation of all the rooms division departments. 

The Rooms Division consists of the following departments:

2. Rooms Division

2.1. Front Office

FRONT OFFICE

This department is a very critical service unit because they are the first contact of guests and prospective
patrons in the hotel. Here is where the first and last impressions are always made! At the front desk, it is
important to be personable, confident, and patient because your guests will vary in temperament,
needs, and expectations. Always remember a friendly, calm, and positive attitude are your best tool
even in trying situations. Multitask-ing becomes an art form at the front desk, calling upon all of your
communication, typing, and computer skills.
Functions include:

1. To sell rooms

2. Provide services such as handling mail and  messages

3. To keep guests account, 

4. Determine credit

5. Render bills and  receive payments

6. Provide the proper financial  and credit accommodations

7. Maintains guest database

8. Reservation and registration

9. Fulfills guest services

10. Maintains guest history

11. Maintains guest database

12. Coordinates guest services

FRONT OFFICE represents the single largest profit center for the hotel, which is room
sales.  It is considered as the hotel's nerve center and liaison between guests and the
property.

FRONT OFFICE ORGANIZATIONAL CHART

Front Office Positions

FRONT DESK

Register guests
Maintains room availability information
RESERVATIONS 

Responds to reservation requests

CONCIERGE

Takes messages
Maintain mails
Guest services that do not involve registration, checkout, or financial procedures

AIRPORT ASSISTANCE

Greets and assists guests from the airport to the hotel and vice versa.

TELEPHONE EXCHANGE

Manages the switchboard

Coordinates wakeup call

UNIFORMED SERVICES

Handles guest luggage

Rooms the guest
Assist guests with any information or service request

2. Rooms Division

2.2. Reservations

RESERVATIONS

How do you convey a smile over the phone? You must do so as you begin the process of the guest cycle.
Reservations call for total command of the keyboard, awareness of hotel revenue goals, upcoming
events, room availability, but above all listen, truly listen, to the guest so you can match their requests
with the hotel’s services. The promise begins with you and you must never write a check that the front
desk can’t cash at check-in.

Process of Reservation: To match room requests with room availability.

      ■Conduct the reservation inquiry

       ■Determine room and rate availability

       ■Create reservation record

       ■Confirm reservation record

       ■Maintain the reservation record

       ■Produce reservation reports

Difference between handling FIT and Group Reservations

FIT GIT

Reservations Department Sales Department

Usually one person calls to reserve for

Usually one person reserves for the whole members of the group
himself/herself

One reservation record for each potential

One reservation record for the whole group
guest

One Guest Folio for each potential guest

One Master Folio for the the whole group opened as part of the pre-registra
opened as part of the pre-registration
process
process

The higher price assigned for room The low price assigned for room

Upon matching room inquiry with room Upon signature of allotment contract, first block the rooms needed. Later, u
availability, the reservation agent reserves a receipt of final list by the cut-off date, reserve the final number of rooms ne
room release the remaining for sale

Reservations can either be Guaranteed or

Reservations are on a Guaranteed basis
Non-Guaranteed

2. Rooms Division

2.3. Concierge :To ensure guest satisfaction

CONCIERGE

This is a section in Front Office Department that is responsible to provide guest services that do not
involve registration, check-out, and other financial duties and procedures.

A job that calls for diplomacy, the ability to wheel-n-deal, and just a touch of magic. Your role is to
accommodate the guest needs during their stay. It calls for an encyclopedic memory of restaurants,
theater offerings, key points of interest, and current city events. The ability to develop a vast network of
connections throughout the hospitality community in your area is essential to serve your guests and see
to their every wish. Your reward as a successful concierge is that no two days are ever the same and
there are always new and different challenges, opportunities, and rewards.

Some Concierge functions and qualifications:

 Elevate properties marketable value

 Typically in a luxury hotel

 Unique requests

 Knowledge of city
  Several languages preferred

 Handling of messages

 Transportation arrangements

 Restaurant reservations

 Ticket purchases

 Points of interest

 Banking information 

 other guest services

2. Rooms Division

2.4. Uniformed Services

UNIFORMED SERVICES

This section of the Front Office consists of valet, doorperson, and bellperson positions. All jobs essential
to first and last impressions set the tone for the quality of service. A congenial disposition that projects a
true spirit of helpfulness will disarm any initial guest trepidation. It also calls for a thorough
comprehension of the hotel, its layout, rooms, and amenities. It is work that demands immaculate
grooming (especially the uniform), standing for long hours, and physical activity. In uniform, you are the
hotel to the guest.

Bell Captain or Guest Services Manager

Door attendants 

 The hotel’s first greeters, open the doors and assist guests.

Bell persons 

 Escort guests to their rooms

 Transport luggage

 Introduce hotel facilities 

 Explains room functions to guests

2. Rooms Division

2.5. Housekeeping

HOUSEKEEPING

This is the largest department in terms of the number of people employed in housekeeping. Up to 50
percent of the hotel employees may work in this department. Because of the hard work and
comparatively low pay, employee turnover is very high in this essential department. the person in
charge is the executive housekeeper or director of services. her or his duties and responsibilities call for
exceptional leadership, organization, motivation, and commitment to maintaining high standards. the
logistics of servicing large numbers of rooms on a daily basis can be challenging.

6 Board Areas of Housekeeping Responsibilities

CHAIN

•The Chain represents the hotel brand, which is clearly displayed to the public on the building and in all
interactions with the customer. STR uses Chain and Brand synonymously.

•There are hundreds of hotel chains throughout the world.

•In some cases, companies organize their hotels by different chains that may not be obvious to the
consumer or traveler, for example:

–Holiday Inn vs. Holiday Inn Express

–Hampton Inn vs. Hampton Inn & Suites

–Best Western vs. Best Western Plus and Best Western Premier

Additional information:

There are 22 chains in the U.S. with 50,000 or more rooms and 24 chains in the world with 75,000 or
more rooms.

Parent Company
Facts about PARENT COMPANY

 Parent companies consist of multiple chains. 

 Some parent companies have just a few chains, while others have many chains. 

 Some people may use the term “Group” as a synonym for Parent Company.

 Parent companies may have hotels around the world or in specific geographic regions.

 Parent companies may have a range of high-end, middle, and low-end chains; or they may
concentrate in one area.

Additional information:

·         There are 21 parent companies in the U.S. with 10,000 or more rooms and 23 parent companies
worldwide with 25,000 or more rooms.

·         Parent companies may have hotels around the world or in specific regions.

Here are some example of Parent Companies, Chains an d Scale:

Parent Companies and Related Chains

• Often the parent company will have a variety of different types of chains.

• A parent company may have a range of high-end, middle, and low-end chains; or they may
concentrate in one area.

• There are sample tables provided for several parent companies.

• Parent companies and related chains change on a regular basis.

Operation: Corporate, Franchise or Independent

Smith Travel Research (STR) uses 3 different codes related to operation:

· A corporate hotel is a chain hotel owned and/or managed by the chain or the parent company.

· A franchise hotel is a chain hotel run by a third party where the chain receives a franchise fee.

· An independent hotel is not affiliated with a chain or parent company.

STR uses three different operation types:

Corporate

Franchise

Independent
A corporate hotel is a chain hotel owned and/or managed by the chain or the parent company.

A franchise hotel is a chain hotel run by a third party where the chain receives some sort of franchise
fee.

Management Company

•A management company operates a hotel for another party.

•The company has a management contract where it receives payment and/or some portion of profits.

•Management companies may manage a variety of different chains as well as independent hotels.

•Some chains or parent companies manage their own hotels.

Additional information:

·         There are 29 management companies in the U.S. and 40 management companies worldwide with
7,500 or more rooms.

Owner Companies
•There are many companies that own multiple hotels.

•There are six owner companies in the Philippines with 500 rooms or more.

•There are 46 owner companies worldwide with 10,000 rooms or more.

•Some chains or parent companies own their own hotels.

•Owners may own hotels from a variety of different chains.

Additional information:

· There are 22 owner companies in the U.S. and 37 owner companies worldwide with 10,000 or
more rooms.
Asset Management Company
· Differs from a management company.

· An asset management company represents the owner in the operation of a hotel.

· A hotel may have both a management company and an asset management company.

Additional information: There are 23 asset management companies in the U.S. and 34 asset
management companies worldwide with 1,000 or more rooms.

Independent Hotels

• Independent hotels are not affiliated with a specific chain.

• Independent hotels may be managed or owned by companies listed on preceding pages.

• Independent hotels vary considerably in size, price level, location, amenities and other
attributes.

• On average though, they would tend to be smaller hotels in rural locations at lower price range.

Independent versus Chain Hotels

• There are over 270 independent hotels in the Philippines in the STR database.

• There are over 100,000 independent hotels in the world in the STR database.

• The percentage of independent versus chain hotels varies among different countries in the
world.

• The graph on the next page shows the percentages in the Philippines, the U.S. and the world.

Sample Raw Data

•STR receives monthly and daily data for hotels.
•Most raw data is exported from hotel company systems. 
•Here is a sample monthly raw data file that STR would receive from a hotel
company.
•Daily data is also reported on either a daily or weekly basis.
STR Data Guidelines
•STR uses a strict set of definitions based on the “Uniform System of Accounts for
the Lodging Industry”.
•Supply (Rooms Available) – the number of rooms in a hotel multiplied by the
days in the month.
•Demand (Rooms Sold) – number of rooms sold by a hotel, does not include
complimentary rooms or “no-shows” (reservations not canceled).
•Revenue – total room revenue generated from the sale of rooms, not including
taxes.  Includes service charges, no resort fees, nothing else such as F&B.
The Uniform System of Accounts is available from the AHLA or HFTP.
Hotel Math
•The math used in basic hotel industry performance metrics is not too
challenging.
•There are a set of formulas that someone needs to understand, such as
Occupancy, ADR, RevPAR, Percent Changes, and Index Numbers.
•There are methodologies that someone needs to understand, for example, a YTD
number is based upon aggregated data, not straight averages.
• The hotel industry relies heavily upon data and the ability to effectively analyze
that data is an important skill.

Key Performance Indicators

From these raw data values, STR calculates the three hotel industry key
performance indicators (KPIs):
• Occupancy - %
• Average Daily Rate (or ADR) - $
• Revenue per Available Room (or RevPAR) - $
important metric, based upon all rooms, combination
of occupancy and ADR.
KPIs are Occupancy, ADR, and RevPAR.
Occupancy Definition"
The percentage of rooms that were sold during a specific time period.

Calculation
Occupancy is calculated by dividing the Demand (number of rooms sold) by the
Supply (number of rooms available). This is a percentage. (Remember you divide
the smaller number by the larger number.)

Occupancy = Demand / Supply

or
Occupancy = Rooms Sold / Rooms Available
ADR
Definition
A measure of the average rate paid for rooms sold during a specific time period.
Calculation
ADR is calculated by dividing the Room Revenue by the Demand (Rooms Sold). 
This is a dollar amount.
ADR = Revenue / Demand
RevPAR
Definition
A measure of the revenue that is generated by a property in terms of each room
available.  This differs from ADR because RevPAR is affected by the amount of
unoccupied rooms, while ADR only shows the average rate of rooms actually sold.

Calculation
RevPAR is calculated by dividing the Room Revenue by the total number of Rooms
Available, the Supply.  This is a dollar amount.
RevPAR = Revenue / Supply
Hint – Importance of RevPAR
•RevPAR is a very important metric for the Hotel Industry since it is a combination
of Occupancy and ADR.
•A hotel could have a 100% Occupancy because of a low ADR. The RevPAR will
reflect that.
•A hotel could have a very high ADR, but only sell one room. The RevPAR will
reflect that as well.
•Frequently when a hotel (or the GM) is evaluated or measured, RevPAR is the
metric that is being looked at.

Hotel Math
•The math used in basic hotel industry performance metrics is not too
challenging.
•There are a set of formulas that someone needs to understand, such as
Occupancy, ADR, RevPAR, Percent Changes, and Index Numbers.
•There are methodologies that someone needs to understand, for example, a YTD
number is based upon aggregated data, not straight averages.
• The hotel industry relies heavily upon data and the ability to effectively analyze
that data is an important skill.

3. Percent Changes
Definition
The comparison of the This Year (TY) number versus the Last Year (LY) number,
whether a raw value or a KPI. The percent change illustrates the amount of
growth (up, flat, or down) from the same period last year.
Calculation
The “This Year” number minus the “Last Year” number divided by the “Last Year”
number. This is a percentage.
Percent Change = (This Year – Last Year) / Last Year * 100
Remember the parentheses for the “order of operations”.
Hint - Percent Changes in General
•Percent Changes are closely scrutinized by the industry.
•A positive Percent Change indicates that the number this year is greater than the
number last year.  For example the Occupancy or ADR value is growing or
improving.
•A negative Percent Change indicates that the number this year is less than the
number last year. For example the Occupancy or ADR value is decreasing or
getting worse.

Hint - % Changes for Raw Values

•The Percent Changes for raw values such as Supply, Demand, and Revenue are
valuable bits of information.
•Supply Percent Change shows whether there are more or less rooms available in
the hotel(s) or market this year versus last year.
•Demand Percent Change shows whether there are more or less rooms sold
(guests spending the night) this year versus last year.
•Revenue Percent Change shows whether there is more or less money being
made by the hotel or hotels (and therefore being spent by those guests).
Hint - % Changes for KPIs
•Occupancy Percent Change shows whether the Occupancy this year is greater or
fewer rooms than the Occupancy last year. This could be related to Supply and
Demand changes.
•ADR Percent Change shows whether the average rate this year is greater or less
than the average rate last year.
•RevPAR Percent Change shows whether the RevPAR amount is greater or less
than the amount last year. This could be related to Occupancy and ADR
differences.
4. Index Numbers
•Index numbers are another example of a formula used by the hotel industry.
Index numbers compare the performance of the subject property to the comp
set.
Here is the formula:
Subject Value / Comp Set Value * 100
•A number greater than 100 means the subject property outperformed the comp
set and a number below 100 means the comp set outperformed the subject
property.
•Index numbers are available for Occupancy, ADR, and RevPAR. They are relied
upon heavily and can affect the GM’s bonus
5. Multiple Time Periods - Monthly
•Multiple time periods for monthly data include:
‒Year-to-Date (YTD) – January through the current month of the current year.
‒Running 12-Month – the current month plus the prior 11 months, also called a
12-Month Moving Average.
‒Running 3-Month – the current month plus the prior two months.
•Metrics such as Occupancy, ADR, Percent Changes and Indexes are displayed for
all of these time periods.
1. Types of Hotel Industry Reports - Property Level Report
•A wide variety of reports are used to help analyze different aspects of the hotel
industry.  

Here are the major types:

‒Property-level Reports – comparing a single property to other sets of hotels
‒Ad-Hoc Reports – analyzing various performance or development metrics for a
set of hotels
‒Destination Reports – analyzing performance data for multiple sets of hotels

PROPERTY LEVEL REPORTS

•The most popular property level report used by the industry is the STAR Report.
•The name “STAR” stands for “Smith Travel Accommodations Report”.
•The original version of this report was launched in 1987.
•The STAR Reports compare the performance of the subject hotel to other
comparative groups of properties.
•STAR Reports are generated on a monthly, weekly and daily basis.

STAR Report Details

•STAR Reports are normally generated in the form of Excel workbooks.
•They are automatically distributed electronically to staff persons responsible for
each hotel.
•No one else has access to a STAR Report for an individual hotel.
•The STAR Reports contain multiple tabs/pages with lots of different types of
data.
•Experienced hotel staff use this data to improve the performance of the hotel
versus their competitors.

Sample Monthly STAR Report

•We will review three tabs of a sample Monthly STAR Report.  These are among
the most popular pages:
‒Table of Contents – displays the subject hotel name, date information, and a list
of all the pages included
‒Monthly Performance At A Glance Page
Tab 2 - Monthly Performance at a Glance
•Provides a quick one-page overview of performance relative to your comp set.
•Displays Occupancy, ADR, and RevPAR for your property and your comp set, also
Index numbers (subject property value/comp set value) and Percent Changes.
•For four points in time: Current Month, Year to Date, Running 3-month and
Running 12-month.
•Also displays basic information for the subject property and the report settings
at the top.

Monthly Performance at a Glance

At a Glance - Hints
•Use this page to obtain a quick performance overview of the subject hotel
compared to the comp set.
•Check the KPI Index Numbers for the current month. Check KPI actual values for
your hotel and the comp set.
•Check the Percent Changes for the Indexes and the actual values to analyze year-
over-year performance.
•Compare the Current Month metrics to the other time periods displayed to see
how the current month performance compares to recent trends. Running Index
numbers and Percent Changes will provide a longer-term perspective.
2. Ad-Hoc Reports
•These reports are generated on a one-time basis as a special request.
•They can be obtained by anyone. (This is different than a STAR Report that can
only be received by someone related to the subject hotel.)
•There are flexible methods to select the user-defined group of hotels that a
person wishes to analyze.
•The ad-hoc reports are generated in the form of an Excel workbook.
There are several ad-hoc reports that analyze different types of data. These are
the most popular examples:
‒Trend Report – displays performance information (Supply, Demand, Revenue,
Occupancy, ADR, RevPAR) for a user-defined group of hotels
‒Profitability/HOST Report – displays profit and loss data for a group of hotels
‒Pipeline Report – displays past and future development information for an area
2. Ad-Hoc Reports
2.1. Trend Reports
•Trend Reports are the most popular type of ad-hoc report.
•Trend reports display historic monthly performance data for a user-defined
group of hotels. Daily data may also be included upon request.
•We will review two tabs of a sample Trend Report:
‒Table of Contents – displays the name of the group of hotels, date information,
and a list of all the pages included
‒Classic Page – displays multiple columns of performance information
Trend – Classic Tab
•The Classic page of a Trend displays columns for Occupancy, ADR, RevPAR,
Supply, Demand and Revenue.
•Actual values are displayed and next to them are the Percent Changes.
•Data is displayed for every month during the time period selected so that people
can identify long term trends related to each metric.
•There are subtotals displaying the Total Year and Year-to-Date metrics for each
year.
2.2. Profitability/HOST Reports
•Different names…similar format…same data. In the U.S. the report is called a
HOST (stands for “Hotel Operating Statistics”) Report, while outside the U.S. it is
called a Profitability Report.
•A Profitability/HOST Report displays annual Profit and Loss accounting
information, including Revenue, Expense, and Profit accounts

•We will review two tabs of a sample Profitability Report:

‒Table of Contents – displays the name of the selected group
‒Summary Page – displays several metrics for various P&L accounts

2.3. Pipeline Reports

•Pipeline Reports displays valuable statistics on past and future hotel
development in an area.
•The term “Pipeline” refers to hotels that are currently in construction or in 3
phases of planning: final planning, planning, or unconfirmed (rumored)
•We will review two tabs of a sample Pipeline Report:
‒Table of Contents – displays the name of the area
‒Summary Page – displays an overview of past and future development
Pipeline – Summary Tab
•The Summary page of a Pipeline Report has 2 main sections.
•The Historic Supply section shows the growth of hotels in a geographic area over
the last 5 years by Scale.
•The Pipeline Projects section shows the hotels that are in the development
pipeline by Phase and by Scale.
•Data is displayed in each section by a number of properties and rooms.
3. Destination Report
•Destination Reports are frequently used by tourism organizations, local hotel
associations, and convention and visitor bureaus.
•These organizations can create a personalized report to help them analyze the
performance of any area of interest.
•We will review the most popular tabs of a Destination Report:
‒Multi-Segment Page – displays current month and YTD numbers for multiple
user-defined groups of hotels
4. Additional Industry Reports
•While the Trend, Pipeline, and Profitability Reports are the most popular ad-hoc
reports, there are others that are commonly used as well. These include:
‒Forecast Reports – projected performance information
‒Census Database – hotel attribute information, over 100 fields of data
‒Property and Room Counts – size and structure information for an area, for
example, hotels in a market by Scale and Chain
QUIZ
1) Most of the entities below are classified as “Chains”. Which one is a “Parent
Company” consisting of multiple chains?
-Accor
2) Which is a true statement about Parent Companies?
- Parent Companies and the related chains change over time
3) What are the three different operation types?
-Corporate, Franchise, Independent
Corporate, managed independent

4) Which is a true statement about independent hotels?

-Independent hotels are not affiliated with a specific chain
5) 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
6) Which is a true statement regarding geographic categorization?
A. STR geographic categories are limited to North America
B. STR uses the UNWTO definitions when it comes to recognizing
countries
C. General managers of hotels do not need to know geographic
categories
D. The hotel industry uses seven continents to categorize hotels
7) Which is a true statement regarding markets?
A. Markets include hotels that are in big cities, not rural areas
B. A country would never have more than 100 markets and never have
less than 2 markets
 C. No market will ever cross country boundaries
D. There is another name for Markets outside the U.S.
 
8) In descending order of geographic size, which option below is correct?
A. Continent, Sub-Continent, Country, Submarket, Market
B. Continent, Country, Sub-Continent, Submarket, Market
C. Continent, Sub-Continent, Market, Country, Submarket
D. Continent, Sub-Continent, Country, Market, Submarket
 
9) Which two geographic categories are the most important for a hotel GM?
A. Region and Market
B. Market and Submarket
C. Region and Submarket
D. Country and Submarket
 
10) Markets and tracts are created based on what two determining factors?
A. Geographic size and population
B. Geographic size and participation
C. Number of hotels and participation
D. Number of hotels and population
 
11) Which is a true statement regarding Tracts and Submarkets
A. Tracts are referred to as Submarkets outside of North America
B. Tracts are never used to represent a small city in a rural market
 C. Tracts are geographic sub-divisions of a Region
D. A country will never have more than 100 Tracts

12) Changes to how Markets and Submarkets are geographically defined are
made how often?
A. Monthly
B. Annually
C. Every five years
D. No regular schedule
13) Which two non-geographic categories are the most important for a hotel GM?
A. Scale and Class
B. Scale and Location
C. Location and Type
D. Class and Type
 
14) How many Scale categories are there compared to Class categories?
A. 6 Scale categories and 6 Class categories
B. 6 Scale categories and 7 Class categories
C. 7 Scale categories and 6 Class categories
D. 7 Scale categories and 7 Class categories
 
15) Which one of the following is an accurate statement regarding Scale and Class
groups and a single chain?
A. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz
Carlton hotel in Japan can be in a different Scale group
 B. A Ritz Carlton hotel in the US can be in one Class group and a Ritz
Carlton hotel in Japan can be in a different Class group
C. A Ritz Carlton hotel will always be in the same Scale and Class groups
in every country throughout the world
D. Ritz Carlton may choose which Scale and which Class they are in
16) Which one of the following is an accurate statement regarding Class groups?
A. The names of the Class group are very different than the names of
the Scale groups
B. Class groups are more popular and relevant in North America rather
than outside North America
C. Independent hotels are slotted into Class groups based upon the ADR
of the independent hotel compared to the chain hotels in the same
market
D. Once an independent hotel is slotted into a Class group, it will never
change
17) 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
 
18) 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
 
19) The four key considerations when creating a Competitive Set are?
A. Participation, Proximity, Policy and Product
B. Participation, Proximity, Pricing and Product
C. Participation, Parking, Policy and Pricing
D. Participation, Perimeter, Pool and Pricing
20) All of the following are good reason for a hotel to have an additional
competitive set, except which one?
A. Have a local competitive set based upon geography and another
based upon a special feature or niche, for example: waterpark,
boutique, or conference
B. Have different sets for weekday/weekend or group/transient
business
C. Have one set that you can easily beat and another which is a realistic
target
D. Different entities may not agree, for example, chain versus
management company
 
21) Who creates a competitive set for a chain hotel?
A. Only the General Manager
B. Only the Revenue Manager
C. Only the Sales and Marketing Managers
 D. It is a joint effort involving many stakeholders
22) What is the average number of hotels in a competitive set?
A. Between 3 and 4
B. Between 4 and 5
C. Between 5 and 6
D. Between 6 and 7
 
23) Which is a valid rule related to creating a competitive set?
A. Comp sets must include five or more hotels
B. No single property or chain can account for more than 25% of the
total participating room supply of a comp set
C. No single company can account for more than 75% of the total
participating room supply of a comp set
D. The comp set rules are in place to protect the confidentiality of
hotel’s data
27) The definitions for Supply, Demand and Revenue used by STR and others in
the lodging industry are taken from what source?
A. Lodging Industry Accounting Fundamentals Guide
B. Uniform System of Accounts for the Lodging Industry
C. Hotel Book Keeping for Dummies
D. Modern Hotel Industry Accounting
 
28) Which statement is true regarding raw data that is submitted to STR?
A. A small amount comes in the form of raw data files
B. Most data is entered online
C. There are limited error check programs
 D. The majority of data is exported from the hotel company systems
29) Which is true regarding the type of performance data (Supply, Demand,
Revenue) that STR receives?
A. Daily only
B. Daily and monthly only
C. Daily, weekly, and monthly
D. Daily, weekly, monthly and quarterly
 

30) Which statement is true regarding RevPAR?

A. It is almost always higher than ADR
B. It can be thought of as a combination of Supply and Demand
C. When a hotel or GM is evaluated, the RevPAR metric is rarely considered
D. It can be thought of as a combination of Occupancy and ADR
33) Which is NOT an accurate statement regarding the differences between
STAR Reports, Ad-hoc Industry Reports, and Destination Reports?
A. Ad-hoc Industry Reports are requested on a one-time, as needed
basis
B. Hotels and hotel companies have annual subscriptions to STAR
reports and receive them on a regular basis
C. Destination Reports are most often received by tourism organizations
D. Ad-Hoc Industry reports or Destination Reports can only be
requested by hotel companies
34) Which of the following is NOT an accurate statement regarding a Trend
Report?
A. A Trend report includes monthly data
B. You can only receive a Trend Report for the last two years
 C. A Trend report can also include daily data
D. A Trend reports displays data over a long period of time
 
35) 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 Total year of 2012 was up compared to the year of
2011
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
36) 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
37) What are the four phases for hotel projects in the development pipeline?
A. In Construction, Post Planning, Planning and Unconfirmed
B. In Construction, Final Planning, Planning and Unconfirmed
C. In Construction, Final Planning, Post Planning and Unconfirmed
D. In Construction, Post Planning, Planning and Pre-Permit
38) A Profitability report displays what type of information?
A. Profit and Loss information, including revenue, expenses and profit
accounts
 B. Balance Sheet (Assets) information
C. Hotel attribute information
D. Forecast data
 
39) The Profitability Report displays data based upon what time period?
A. Weekly
B. Monthly
C. Quarterly
D. Annual
40) Destination Reports are most often used by?
A. Hotel Associations
B. Tourism Organizations
C. Convention and Visitor Bureaus
D. All of the above