Test Bank for Foundations of Lodging Management 2nd Edition Hayes

1. Approximately how many hotels are in operation in the United States?
a. 50,000
b. 5,000
c. 500,000
d. 500

2. What is the approximate average size of lodging properties operating in the United States?
a. 1,900 rooms
b. 900 rooms
c. 90 rooms
d. 9 rooms

3. What is most likely to happen when many travelers want to visit and stay in an area?
a. Very few hotel rooms will be built in that area.
b. Room rates and the number of operating hotel properties will increase.
c. Room rates and the number of operating hotel properties will decrease.
d. The prices of goods and services desired by the travelers will decrease.

4. In the small town of Someko, Michigan there are 5 hotels with a combined total of 650 sleeping rooms.
During the month of June an average of 400 of those 650 rooms were sold each day, generating $29,200 in
room sales. What was the Average Daily Rate (ADR) of the town of Someko for the month of June?
a. $66.00
b. $73.00
c. $44.92
d. $224.61

5. What is the greatest difference between full-service hotels and limited-service hotels?
a. The selling price of rooms
b. The size of the hotels
c. The food and beverage services offered by the hotels
d. The location of the hotels

6. Which of the following is the formula hoteliers use to calculate occupancy rate?
a.

b.

c.

d.


7. Which of the following is the formula hoteliers use to calculate RevPAR?
a. Total rooms revenue × Occupancy Rate = RevPAR
b. Total rooms available × Occupancy Rate = RevPAR
c. Total rooms sold × Occupancy Rate = RevPAR
d. ADR × Occupancy Rate = RevPAR