CHIA: CERTIFIED HOTEL INDUSTRY ANALYST EXAM REAL
COMPLETE EXAM QUESTIONS AND CORRECT ANSWERS NEWEST
VERSION 2026/2027
Q1. What does ADR stand for in hotel analytics?
ANSWER ADR stands for Average Daily Rate. It is calculated by
dividing total room revenue by the total number of rooms sold (occupied
rooms) for a given period. ADR measures the average rental income per
paid occupied room.
Q2. How is ADR calculated?
ANSWER ADR = Total Room Revenue ÷ Total Rooms Sold. For
example, if a hotel earns $50,000 in room revenue and sells 500 rooms,
the ADR is $100.
Q3. What is RevPAR and why is it important?
ANSWER RevPAR (Revenue Per Available Room) is one of the most
important KPIs in hotel analytics. It combines both occupancy and ADR
into a single metric. It measures how effectively a hotel fills its available
rooms at an average rate. RevPAR = ADR × Occupancy Rate, or Total
Room Revenue ÷ Total Available Rooms.
Q4. What are the two formulas for calculating RevPAR?
ANSWER 1) RevPAR = ADR × Occupancy Rate. 2) RevPAR = Total
Room Revenue ÷ Total Available Rooms. Both formulas yield the same
result and can be used interchangeably depending on available data.
Q5. What is Occupancy Rate and how is it calculated?
ANSWER Occupancy Rate is the percentage of available rooms that
were occupied during a specific period. Formul ANSWER Occupancy
Rate = (Rooms Sold ÷ Rooms Available) × 100. For example, if a hotel
has 200 rooms and 160 are occupied, occupancy = 80%.
Q6. Define TRevPAR.
, ANSWER TRevPAR (Total Revenue Per Available Room) measures
total hotel revenue—including rooms, food & beverage, spa, parking,
and all other departments—divided by total available rooms. It provides
a more comprehensive picture of hotel performance than RevPAR alone.
Q7. What is GOPPAR?
ANSWER GOPPAR (Gross Operating Profit Per Available Room) =
Gross Operating Profit ÷ Total Available Rooms. It measures profitability
per available room and is considered a more meaningful performance
metric than RevPAR because it accounts for operating costs.
Q8. What is the difference between RevPAR and GOPPAR?
ANSWER RevPAR measures revenue performance, while GOPPAR
measures profitability. A hotel can have high RevPAR but low GOPPAR
if operating costs are excessive. GOPPAR subtracts operating expenses
from revenue, providing insight into the actual profit generated per
available room.
Q9. What is NRevPAR?
ANSWER NRevPAR (Net Revenue Per Available Room) = (Room
Revenue − Distribution Costs) ÷ Available Rooms. It adjusts RevPAR for
the cost of acquiring the booking (commissions, OTA fees), giving a
clearer picture of actual net revenue after distribution expenses.
Q10. What does EBITDA stand for in hotel finance?
ANSWER EBITDA stands for Earnings Before Interest, Taxes,
Depreciation, and Amortization. It is used to assess a hotel's operational
profitability, excluding non-operating expenses and non-cash charges.
Q11. How is hotel Occupancy Cost calculated?
ANSWER Occupancy Cost refers to the costs directly associated with
renting rooms, including housekeeping labor, amenities, laundry, and
other room-related expenses. It is often expressed as a percentage of
room revenue.
Q12. What is the formula for Revenue Generating Index (RGI)?
ANSWER RGI = Hotel's RevPAR ÷ Competitive Set's RevPAR. An RGI
above 1.0 (or 100) means the hotel is outperforming its competitive set
in revenue generation; below 1.0 indicates underperformance.
,Q13. What is Market Penetration Index (MPI)?
ANSWER MPI = Hotel's Occupancy Rate ÷ Competitive Set's
Occupancy Rate × 100. It measures whether the hotel is capturing its fair
share of occupancy relative to its competitive set. An MPI above 100
indicates above-fair-share performance.
Q14. What is Average Rate Index (ARI)?
ANSWER ARI = Hotel's ADR ÷ Competitive Set's ADR × 100. It
measures whether the hotel is achieving above or below fair share of
average rates compared to its competitors. ARI above 100 means the
hotel commands a premium rate.
Q15. What is fair share in hotel analytics?
ANSWER Fair share is the portion of the total competitive set demand
that a hotel would capture if all hotels in the set performed equally. It is
calculated as: Hotel's Available Rooms ÷ Total Competitive Set Available
Rooms × 100.
Q16. Define Rooms Available in hotel reporting.
ANSWER Rooms Available (also called Available Rooms or Supply)
represents the total number of rooms that could potentially be sold
during a reporting period. Formul ANSWER Number of Rooms ×
Number of Days in Period. Out-of-order (OOO) rooms are sometimes
excluded.
Q17. What is the difference between Rooms Available and Rooms
Occupied?
ANSWER Rooms Available is the total inventory of rooms open for sale;
Rooms Occupied (Rooms Sold) is the number of rooms actually rented
by guests. The difference between the two represents unsold/vacant
rooms.
Q18. What is a Comp Set (Competitive Set)?
ANSWER A competitive set (comp set) is a group of hotels selected by
a hotel as its primary competitors. These hotels are typically similar in
location, quality, brand, or target market. Comp set performance is used
as a benchmark for evaluating a hotel's own performance.
Q19. What is STR and what data does it provide?
, ANSWER STR (now CoStar) is the leading provider of hotel industry
benchmarking data. It collects and reports on occupancy, ADR,
RevPAR, supply, and demand for hotels worldwide, allowing properties
to compare their performance against comp sets and market
aggregates.
Q20. What is the STAR Report?
ANSWER The STAR Report (Smith Travel Accommodations Report) is
a benchmarking report provided by STR that gives hotels a detailed
comparison of their performance metrics (occupancy, ADR, RevPAR)
versus their competitive set, local market, and upper scale segment
averages.
Q21. What does 'Index' mean in STR reporting?
ANSWER An index in STR reporting compares a hotel's performance to
its competitive set. An index of 100 means the hotel is performing at
exactly its fair share. Above 100 indicates outperformance; below 100
indicates underperformance.
Q22. What is yield in hotel management?
ANSWER Yield (also called yield percentage or yield factor) measures
how much of the maximum potential revenue a hotel is actually
achieving. Yield = Actual Revenue ÷ Potential Revenue × 100. It
considers both occupancy and rate optimization simultaneously.
Q23. What is Potential Average Rate?
ANSWER Potential Average Rate is the ADR a hotel would achieve if it
sold every available room at the highest published rate (rack rate) for a
given period. It represents the maximum rate potential and is used as a
benchmark for yield calculations.
Q24. What is the formula for Rooms Revenue?
ANSWER Rooms Revenue = ADR × Rooms Sold, or equivalently,
Rooms Revenue = RevPAR × Rooms Available. It captures total
revenue generated from room sales only, excluding other hotel
departments.
Q25. What is Cost Per Occupied Room (CPOR)?
ANSWER CPOR = Total Rooms Department Costs ÷ Number of Rooms
Occupied. It measures how much it costs the hotel to service each
COMPLETE EXAM QUESTIONS AND CORRECT ANSWERS NEWEST
VERSION 2026/2027
Q1. What does ADR stand for in hotel analytics?
ANSWER ADR stands for Average Daily Rate. It is calculated by
dividing total room revenue by the total number of rooms sold (occupied
rooms) for a given period. ADR measures the average rental income per
paid occupied room.
Q2. How is ADR calculated?
ANSWER ADR = Total Room Revenue ÷ Total Rooms Sold. For
example, if a hotel earns $50,000 in room revenue and sells 500 rooms,
the ADR is $100.
Q3. What is RevPAR and why is it important?
ANSWER RevPAR (Revenue Per Available Room) is one of the most
important KPIs in hotel analytics. It combines both occupancy and ADR
into a single metric. It measures how effectively a hotel fills its available
rooms at an average rate. RevPAR = ADR × Occupancy Rate, or Total
Room Revenue ÷ Total Available Rooms.
Q4. What are the two formulas for calculating RevPAR?
ANSWER 1) RevPAR = ADR × Occupancy Rate. 2) RevPAR = Total
Room Revenue ÷ Total Available Rooms. Both formulas yield the same
result and can be used interchangeably depending on available data.
Q5. What is Occupancy Rate and how is it calculated?
ANSWER Occupancy Rate is the percentage of available rooms that
were occupied during a specific period. Formul ANSWER Occupancy
Rate = (Rooms Sold ÷ Rooms Available) × 100. For example, if a hotel
has 200 rooms and 160 are occupied, occupancy = 80%.
Q6. Define TRevPAR.
, ANSWER TRevPAR (Total Revenue Per Available Room) measures
total hotel revenue—including rooms, food & beverage, spa, parking,
and all other departments—divided by total available rooms. It provides
a more comprehensive picture of hotel performance than RevPAR alone.
Q7. What is GOPPAR?
ANSWER GOPPAR (Gross Operating Profit Per Available Room) =
Gross Operating Profit ÷ Total Available Rooms. It measures profitability
per available room and is considered a more meaningful performance
metric than RevPAR because it accounts for operating costs.
Q8. What is the difference between RevPAR and GOPPAR?
ANSWER RevPAR measures revenue performance, while GOPPAR
measures profitability. A hotel can have high RevPAR but low GOPPAR
if operating costs are excessive. GOPPAR subtracts operating expenses
from revenue, providing insight into the actual profit generated per
available room.
Q9. What is NRevPAR?
ANSWER NRevPAR (Net Revenue Per Available Room) = (Room
Revenue − Distribution Costs) ÷ Available Rooms. It adjusts RevPAR for
the cost of acquiring the booking (commissions, OTA fees), giving a
clearer picture of actual net revenue after distribution expenses.
Q10. What does EBITDA stand for in hotel finance?
ANSWER EBITDA stands for Earnings Before Interest, Taxes,
Depreciation, and Amortization. It is used to assess a hotel's operational
profitability, excluding non-operating expenses and non-cash charges.
Q11. How is hotel Occupancy Cost calculated?
ANSWER Occupancy Cost refers to the costs directly associated with
renting rooms, including housekeeping labor, amenities, laundry, and
other room-related expenses. It is often expressed as a percentage of
room revenue.
Q12. What is the formula for Revenue Generating Index (RGI)?
ANSWER RGI = Hotel's RevPAR ÷ Competitive Set's RevPAR. An RGI
above 1.0 (or 100) means the hotel is outperforming its competitive set
in revenue generation; below 1.0 indicates underperformance.
,Q13. What is Market Penetration Index (MPI)?
ANSWER MPI = Hotel's Occupancy Rate ÷ Competitive Set's
Occupancy Rate × 100. It measures whether the hotel is capturing its fair
share of occupancy relative to its competitive set. An MPI above 100
indicates above-fair-share performance.
Q14. What is Average Rate Index (ARI)?
ANSWER ARI = Hotel's ADR ÷ Competitive Set's ADR × 100. It
measures whether the hotel is achieving above or below fair share of
average rates compared to its competitors. ARI above 100 means the
hotel commands a premium rate.
Q15. What is fair share in hotel analytics?
ANSWER Fair share is the portion of the total competitive set demand
that a hotel would capture if all hotels in the set performed equally. It is
calculated as: Hotel's Available Rooms ÷ Total Competitive Set Available
Rooms × 100.
Q16. Define Rooms Available in hotel reporting.
ANSWER Rooms Available (also called Available Rooms or Supply)
represents the total number of rooms that could potentially be sold
during a reporting period. Formul ANSWER Number of Rooms ×
Number of Days in Period. Out-of-order (OOO) rooms are sometimes
excluded.
Q17. What is the difference between Rooms Available and Rooms
Occupied?
ANSWER Rooms Available is the total inventory of rooms open for sale;
Rooms Occupied (Rooms Sold) is the number of rooms actually rented
by guests. The difference between the two represents unsold/vacant
rooms.
Q18. What is a Comp Set (Competitive Set)?
ANSWER A competitive set (comp set) is a group of hotels selected by
a hotel as its primary competitors. These hotels are typically similar in
location, quality, brand, or target market. Comp set performance is used
as a benchmark for evaluating a hotel's own performance.
Q19. What is STR and what data does it provide?
, ANSWER STR (now CoStar) is the leading provider of hotel industry
benchmarking data. It collects and reports on occupancy, ADR,
RevPAR, supply, and demand for hotels worldwide, allowing properties
to compare their performance against comp sets and market
aggregates.
Q20. What is the STAR Report?
ANSWER The STAR Report (Smith Travel Accommodations Report) is
a benchmarking report provided by STR that gives hotels a detailed
comparison of their performance metrics (occupancy, ADR, RevPAR)
versus their competitive set, local market, and upper scale segment
averages.
Q21. What does 'Index' mean in STR reporting?
ANSWER An index in STR reporting compares a hotel's performance to
its competitive set. An index of 100 means the hotel is performing at
exactly its fair share. Above 100 indicates outperformance; below 100
indicates underperformance.
Q22. What is yield in hotel management?
ANSWER Yield (also called yield percentage or yield factor) measures
how much of the maximum potential revenue a hotel is actually
achieving. Yield = Actual Revenue ÷ Potential Revenue × 100. It
considers both occupancy and rate optimization simultaneously.
Q23. What is Potential Average Rate?
ANSWER Potential Average Rate is the ADR a hotel would achieve if it
sold every available room at the highest published rate (rack rate) for a
given period. It represents the maximum rate potential and is used as a
benchmark for yield calculations.
Q24. What is the formula for Rooms Revenue?
ANSWER Rooms Revenue = ADR × Rooms Sold, or equivalently,
Rooms Revenue = RevPAR × Rooms Available. It captures total
revenue generated from room sales only, excluding other hotel
departments.
Q25. What is Cost Per Occupied Room (CPOR)?
ANSWER CPOR = Total Rooms Department Costs ÷ Number of Rooms
Occupied. It measures how much it costs the hotel to service each
