CHIA Certification
1. What are the different kinds of affiliations a single hotel can have?: Chain Parent Company
Operation: Corporate, Franchise, or Independent Management Company
Owner
Asset Management Company Membership or Marketing
Groups
2. What does a chain represent?: The hotel brand
3. There are chains in the US with 50,000 rooms or more and chains in the
world with 75,000 rooms or more: 22; 24
4. Most people agree that was the first chain.: Holiday Inn
5. Parent Companies: Consist of multiple chains; often the parent company will havea variety of different types of
chains
6. T/F A parent company may have a range of high-end, middle, and low-end chains; or they may concentrate in
one area: True
7. What is the top parent company in the US?: Hilton Worldwide
8. Corporate hotel: A chain hotel owned or managed by the chain or the parent company
9. Franchise hotel: A chain hotel run by a 3rd party where the chain receives some sort of franchise fee
10. Independent hotel: Not affiliated with a chain or parent company
11. Of the 3 basic types of hotel operations (corporate, franchise, and inde- pendent), which one has the most US
properties? Which one has the least?: - Most=Franchise
Least=Corporate
12. Of the 3 basic types of hotel operations (corporate, franchise, and inde- pendent), which one has the most
worldwide properties? Which one has the least?: Most=Independent
Least=Corporate
13. What is the ratio of chain hotels vs. independent hotels in the US?: 70% are chain; 30% are independent
14. What is the ratio of chain hotels vs. independent hotels worldwide?: 40% are chain; 60% are independent
15. Management company: Operates a hotel for another party; the company has a management contract where it
receives payment/some portion of profits
16. T/F Some chains or parent companies manage their own hotels: True
17. Owner companies: There are many companies that own multiple hotels
18. Asset management company: Represents the owner in the operation of a hotel
,19. T/F A hotel cannot have both a management company and an asset man- agement company: False. They can.
20. T/F The Holiday Inn and Holiday Inn Express are 2 different chains: True
21. What are the 3 classifications of operation types?: 1. Corporate
2. Franchise
3. Independent
22. T/F There is a very strong trend for US hotels to expand internationally because the opportunity for large
US chains is there: True
23. Describe the average independent hotel in the US: Classified as Economy, Located in a Suburban area, and has
25 rooms or less
24. Most of the entities below are classified as chains. Which one is a parent company consisting of multiple
chains?
A. Hampton Inn
B. Motel 6
C. Choice
D. Holiday Inn Express: C. Choice
25. Which is a true statement about parent companies?
A. They and their related chains have changed over time
B. They must consist of no more than 5 chains.
C. They can only consist of chains in a single Scale.
D. They can only have hotels in a single country.: A. They and their related chains have changed over time
26. Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain.
B. Chain hotels outnumber independent hotels in every country of the world.
C. Independent hotels are mostly Luxury class hotels in Urban locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity.: A. They're not affiliated with a specific chain.
27. Which is a true statement about management companies?
A. They have contracts where they receive payment for their services and/or some portion of the profits.
B. They may manage only one chain.
C. They will always own the hotels they manage.
D. They serve the exact same role as asset management companies.: A. They have contracts...
28. What are the major geographic categories?: World Continent
Sub-continent
,Country Market
Tract or Submarket
29. What are the 4 continents (according to STR)?: Americas, Europe, Mideast/Africa, and Asia Pacific
30. Each continent includes how many sub-continents?: 3-4
31. What are the 9 US regions?: New England Middle Atlantic
South Atlantic East North
Central East South Central
West North Central West
South Central Mountain
Pacific
32. What are the 2 most important types of classifications if you're a hotel manager (not a corporation)?:
Market and Tract/Sub-market
33. What is STR's definition of a region?: It refers to a specific region WITHIN a country
34. How are markets created?: Based on the number of hotels in the area and participation
35. The US is broken up into geographic areas called markets: 163
36. T/F Markets can cross state borders: True
37. There are tracts in the US: 628
38. Revisions to markets and tracts are made at the .: end of the year (after
Dec. and before Jan.); changes are not made during the year
39. Tracts: Geographic sub-divisions of a market
40. There may be anywhere from to tracts in a market: 2-10
41. In a metro market, there is usually a tract from the downtown area, some- times called the : Central Business
District
42. Outside of North America, the term is used instead of Tract.: Sub- market
43. What are the revisions to markets and tracts based upon?: -Supply (new hotels opening)
-Participation (new hotels submitting performance data)
-Client feedback
44. T/F STR uses the UNWTO definitions when it comes to recognizing coun- tries: True
45. T/F No market will ever cross country borders: True
, 46. What are the 7 Scale categories?: 1. Luxury chains
2. Upper upscale chains
3. Upscale chains
4. Upper midscale chains
5. Midscale chains
6. Economy chains
7. Independents
47. What is the average ADR for Luxury chains?: $300
48. What is the average ADR for Economy chains?: $50
49. What is the average ADR of the Independent Scale group?: $100
50. T/F When a chain is categorized in a specific Scale group, that means every hotel in that chain is in that Scale
group everywhere in the world, in every country and market.: True
51. Chains are positioned in Scale groups based upon what?: ADR
52. How are chains sorted by their ADR amount?: From high to low
53. T/F Breakpoints between Scale groups stay the same every year: False. They may move up and down slightly
from year to year
54. What's the difference between Class and Scale categories?: The class category has no "independent" class
group; so there's only 6 class categories, instead of 7
55. How do Independent hotels fit into different Class categories?: They're slotted into the Scale categories
(Luxury through Economy) at similar ADR levels
56. T/F Chain hotels are always in the same Class as Scale.: True. A Ritz-Carlton will always be in the Luxury class
group since it's in the Luxury Scale group
57. Class is used globally, but is especially popular where?: Outside of North America where there are more
independent hotels
58. When are independent hotels grouped into Classes?: At the beginning of the year based on the annual data for
the prior year
59. What is the ADR range for Luxury chains?: $150-$220
60. What is the ADR range for Upper Upscale chains?: $120-$150
61. What is the ADR range for Upscale chains?: $100-$120
62. What is the ADR range for Upper Midscale chains?: $85-$100
63. What is the ADR range for Midscale chains?: $70-$85
64. What is the ADR range for Economy chains?: $55-$70
65. Urban area: Large metro cities
66. Suburban area: The suburbs of metro cities
67. Airport area: Close to a major airport
68. Interstate area: Close to a major highway
69. Resort area: Primarily leisure destination hotels
1. What are the different kinds of affiliations a single hotel can have?: Chain Parent Company
Operation: Corporate, Franchise, or Independent Management Company
Owner
Asset Management Company Membership or Marketing
Groups
2. What does a chain represent?: The hotel brand
3. There are chains in the US with 50,000 rooms or more and chains in the
world with 75,000 rooms or more: 22; 24
4. Most people agree that was the first chain.: Holiday Inn
5. Parent Companies: Consist of multiple chains; often the parent company will havea variety of different types of
chains
6. T/F A parent company may have a range of high-end, middle, and low-end chains; or they may concentrate in
one area: True
7. What is the top parent company in the US?: Hilton Worldwide
8. Corporate hotel: A chain hotel owned or managed by the chain or the parent company
9. Franchise hotel: A chain hotel run by a 3rd party where the chain receives some sort of franchise fee
10. Independent hotel: Not affiliated with a chain or parent company
11. Of the 3 basic types of hotel operations (corporate, franchise, and inde- pendent), which one has the most US
properties? Which one has the least?: - Most=Franchise
Least=Corporate
12. Of the 3 basic types of hotel operations (corporate, franchise, and inde- pendent), which one has the most
worldwide properties? Which one has the least?: Most=Independent
Least=Corporate
13. What is the ratio of chain hotels vs. independent hotels in the US?: 70% are chain; 30% are independent
14. What is the ratio of chain hotels vs. independent hotels worldwide?: 40% are chain; 60% are independent
15. Management company: Operates a hotel for another party; the company has a management contract where it
receives payment/some portion of profits
16. T/F Some chains or parent companies manage their own hotels: True
17. Owner companies: There are many companies that own multiple hotels
18. Asset management company: Represents the owner in the operation of a hotel
,19. T/F A hotel cannot have both a management company and an asset man- agement company: False. They can.
20. T/F The Holiday Inn and Holiday Inn Express are 2 different chains: True
21. What are the 3 classifications of operation types?: 1. Corporate
2. Franchise
3. Independent
22. T/F There is a very strong trend for US hotels to expand internationally because the opportunity for large
US chains is there: True
23. Describe the average independent hotel in the US: Classified as Economy, Located in a Suburban area, and has
25 rooms or less
24. Most of the entities below are classified as chains. Which one is a parent company consisting of multiple
chains?
A. Hampton Inn
B. Motel 6
C. Choice
D. Holiday Inn Express: C. Choice
25. Which is a true statement about parent companies?
A. They and their related chains have changed over time
B. They must consist of no more than 5 chains.
C. They can only consist of chains in a single Scale.
D. They can only have hotels in a single country.: A. They and their related chains have changed over time
26. Which is a true statement about independent hotels?
A. Independent hotels are not affiliated with a specific chain.
B. Chain hotels outnumber independent hotels in every country of the world.
C. Independent hotels are mostly Luxury class hotels in Urban locations with more than 150 rooms
D. Independent hotels may never be managed by an outside entity.: A. They're not affiliated with a specific chain.
27. Which is a true statement about management companies?
A. They have contracts where they receive payment for their services and/or some portion of the profits.
B. They may manage only one chain.
C. They will always own the hotels they manage.
D. They serve the exact same role as asset management companies.: A. They have contracts...
28. What are the major geographic categories?: World Continent
Sub-continent
,Country Market
Tract or Submarket
29. What are the 4 continents (according to STR)?: Americas, Europe, Mideast/Africa, and Asia Pacific
30. Each continent includes how many sub-continents?: 3-4
31. What are the 9 US regions?: New England Middle Atlantic
South Atlantic East North
Central East South Central
West North Central West
South Central Mountain
Pacific
32. What are the 2 most important types of classifications if you're a hotel manager (not a corporation)?:
Market and Tract/Sub-market
33. What is STR's definition of a region?: It refers to a specific region WITHIN a country
34. How are markets created?: Based on the number of hotels in the area and participation
35. The US is broken up into geographic areas called markets: 163
36. T/F Markets can cross state borders: True
37. There are tracts in the US: 628
38. Revisions to markets and tracts are made at the .: end of the year (after
Dec. and before Jan.); changes are not made during the year
39. Tracts: Geographic sub-divisions of a market
40. There may be anywhere from to tracts in a market: 2-10
41. In a metro market, there is usually a tract from the downtown area, some- times called the : Central Business
District
42. Outside of North America, the term is used instead of Tract.: Sub- market
43. What are the revisions to markets and tracts based upon?: -Supply (new hotels opening)
-Participation (new hotels submitting performance data)
-Client feedback
44. T/F STR uses the UNWTO definitions when it comes to recognizing coun- tries: True
45. T/F No market will ever cross country borders: True
, 46. What are the 7 Scale categories?: 1. Luxury chains
2. Upper upscale chains
3. Upscale chains
4. Upper midscale chains
5. Midscale chains
6. Economy chains
7. Independents
47. What is the average ADR for Luxury chains?: $300
48. What is the average ADR for Economy chains?: $50
49. What is the average ADR of the Independent Scale group?: $100
50. T/F When a chain is categorized in a specific Scale group, that means every hotel in that chain is in that Scale
group everywhere in the world, in every country and market.: True
51. Chains are positioned in Scale groups based upon what?: ADR
52. How are chains sorted by their ADR amount?: From high to low
53. T/F Breakpoints between Scale groups stay the same every year: False. They may move up and down slightly
from year to year
54. What's the difference between Class and Scale categories?: The class category has no "independent" class
group; so there's only 6 class categories, instead of 7
55. How do Independent hotels fit into different Class categories?: They're slotted into the Scale categories
(Luxury through Economy) at similar ADR levels
56. T/F Chain hotels are always in the same Class as Scale.: True. A Ritz-Carlton will always be in the Luxury class
group since it's in the Luxury Scale group
57. Class is used globally, but is especially popular where?: Outside of North America where there are more
independent hotels
58. When are independent hotels grouped into Classes?: At the beginning of the year based on the annual data for
the prior year
59. What is the ADR range for Luxury chains?: $150-$220
60. What is the ADR range for Upper Upscale chains?: $120-$150
61. What is the ADR range for Upscale chains?: $100-$120
62. What is the ADR range for Upper Midscale chains?: $85-$100
63. What is the ADR range for Midscale chains?: $70-$85
64. What is the ADR range for Economy chains?: $55-$70
65. Urban area: Large metro cities
66. Suburban area: The suburbs of metro cities
67. Airport area: Close to a major airport
68. Interstate area: Close to a major highway
69. Resort area: Primarily leisure destination hotels
