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CHIA CERTIFICATION UPDATED EXAM 2025 STRUCTRED
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Chain - CORRECT ANSWER >>> A representation of a hotel brand What is another name for a chain? - CORRECT ANSWER >>> Brand How many chains are there in the US? World? How many rooms does each one have? - CORRECT ANSWER >>> 24 chains in the US with over 50,000 rooms or more 28 chains in the world with over 75,000 rooms Parent company - CORRECT ANSWER >>> A business that consists of multiple chains What is another name for parent company? - CORRECT ANSWER >>> Group How many parent companies are there in the US? World? How many rooms does each one have? - CORRECT ANSWER >>> 22 parent companies w/ 10,000 rooms or more 34 parent companies worldwide w/ 25,000 rooms What are the three different operation types - CORRECT ANSWER >>> Corporate, franchise, independent Corporate Hotel - CORRECT ANSWER >>> A chain hotel owned/managed by the chain or parent company
Franchise Hotel - CORRECT ANSWER >>> A chain hotel run by a third party where the chain recieves some sort of franchise fee Who is an independent hotel affiliated with? - CORRECT ANSWER >>> Neither a chain nor parent company. They are independent Are Chain hotels more popular than independent hotels in the US? WW? - CORRECT ANSWER >>> Yes, in the US chains are more popular (70/30). WW, Independents are (30/70 or 20/80) Management Company - CORRECT ANSWER >>> A company that operates a hotel for another company How many management companies are there in the US? World? How many rooms does each one have? - CORRECT ANSWER >>> There are 32 management companies in the U.S. with 8,000 rooms or more and 58 management companies worldwide with 10,000 rooms or more. Owner companies - CORRECT ANSWER >>> Companies that own hotels How many owner companies are there in the US? World? How many rooms does each one have? - CORRECT ANSWER >>> There are 24 owner companies in the U.S. and 46 owner companies worldwide with 10,000 rooms or more. Asset management company - CORRECT ANSWER >>> A Management Company that represents the owner in the operation of a hotel. (between the owner and management company) How many asset management companies are there in the US? World? How many rooms does each one have? - CORRECT ANSWER >>> There are 30 Asset Management Companies in the U.S. and 39 Asset Management Companies worldwide with 1,000 rooms or greater.
What would the US Virgin Islands and Puerto Rico appear as? **- CORRECT ANSWER
** Separate countries How many countries have at least one hotel on it? - CORRECT ANSWER >>> 211 How many countries have hotels with 50,000 rooms or more? - CORRECT ANSWER >>> 39 How many countries have no properties in the STR database? - CORRECT ANSWER >>> 9 What are the countries with no hotels? - CORRECT ANSWER >>> Central African Republic, Falkland Islands, Kiribati, Kosovo, Liberia, Nauru, North Korea, South Sudan, and Tuvalu. In the US, where are the majority of hotels located? - CORRECT ANSWER >>> The Coasts How are markets created? - CORRECT ANSWER >>> Based upon the number of hotels in an area and the participation. Below country, what is one of the most important geo categories **- CORRECT ANSWER ** Market Who is the market especially important to? - CORRECT ANSWER >>> The GM How many markets does the US have? - CORRECT ANSWER >>> 163 Can markets cross state lines? - CORRECT ANSWER >>> Yes, it happens for 12 US markets How many metro markets are there? - CORRECT ANSWER >>> 93
How many non metro/rural markets? - CORRECT ANSWER >>> 70 When are markets reviewed? Based on what? - CORRECT ANSWER >>> annually, based on the number of hotels and participation Can a market cross country lines? - CORRECT ANSWER >>> NO Tracts/Submarkets - CORRECT ANSWER >>> A geographic subset of a market Inside North America, what term is used, tract or submarket? Outside North America? - CORRECT ANSWER >>> tract inside, submarket outside How often are submarkets reviewed? Based on what? - CORRECT ANSWER >>> Annually, based on the number of hotels and participation How many tracts are typically in a market? - CORRECT ANSWER >>> 2 - 10 In a metro market, what is there usually a tract for? - CORRECT ANSWER >>> A Central Business district How many tracts are there in the US? - CORRECT ANSWER >>> 630 When are revisions to markets and tracts made? - CORRECT ANSWER >>> On a regular basis, typically at the end of the year. Changes due to increased participation are made in July What are revisions to markets and tracts based on? - CORRECT ANSWER >>> Supply, participation, client feedback
Country and Tract/Sub-Market - CORRECT ANSWER >>> Market and Tract/Sub-Market Markets and tracts are created based on what two determining factors? Geographic size and population Geographic size and participation Number of hotels and participation Number of hotels and population - CORRECT ANSWER >>> Number of hotels and participation
- Which is a true statement regarding Tracts Tracts are referred to as Sub-Markets outside of North America Tracts are never used to represent a small city in a rural market Tracts are geographic sub-divisions of a Region A country will never have more than 100 Tracts - CORRECT ANSWER >>> Tracts are referred to as Sub-Markets outside of North America
- Changes to how Markets and Tracts are geographically defined are made how often? Monthly Annually Every five years No regular schedule - CORRECT ANSWER >>> No regular schedule How many scale categories are there? - CORRECT ANSWER >>> 7, 6 for chains and 1 for independents How is scale determined? - CORRECT ANSWER >>> ADR
The average ADR of the Independent Scale group (independent hotels) in the US and world is close to...? - CORRECT ANSWER >>> $ What are the seven scales? - CORRECT ANSWER >>> Luxury, upper upscale, upscale, upper midscale, midscale, economy, independent If a chain is in the economy scale, can that same chain be upscale in a different country? - CORRECT ANSWER >>> No, they are the same for every chain When is scale determined? - CORRECT ANSWER >>> At the beginning of every year Can a chain move up or down in the scale from year to year? - CORRECT ANSWER >>> Yes Are chain hotels always the same in scale and class? - CORRECT ANSWER >>> Yes Which method, class or scale, is used globally? - CORRECT ANSWER >>> Class When can class/scale categories be collapsed? - CORRECT ANSWER >>> Based on participation What are some other non geograhic categories that STR tracks **- CORRECT ANSWER
** Location Extended Stay Boutique Destination Resort Additional Hotel Types Hotel Ratings
Class groups are more popular and relevant in North America rather than outside North America Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market Once an independent hotel is slotted into a Class group, it will never change - CORRECT ANSWER >>> Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market
- Which one of the following is NOT a Location Category used by the hotel industry? Airport Suburban Oceanfront Urban - CORRECT ANSWER >>> Oceanfront
- Which is NOT a valid non-geographic category? Extended Stay Boutique Guest Satisfaction Rating Destination Resort - CORRECT ANSWER >>> Guest Satisfaction Rating Benchmarking - CORRECT ANSWER >>> Comparing your hotels standings to your competitions Who can individual hotels compare their performance to? **- CORRECT ANSWER
** Competitive sets and industry segments Who can companies compare their own properties to? - CORRECT ANSWER >>> A variety of comparative hotels
Who can tourism organizations compare their performance to? **- CORRECT ANSWER
** Comparable markets Competitive Set - CORRECT ANSWER >>> a group of hotels used primarily for comparison against a subject property for performance benchmarking purposes. Why are comp sets used? - CORRECT ANSWER >>> Compare to the subject property for performance benchmarking purposes Aide the sales and marketing department Use in management contracts for performance requirements (often determines the amount of compensation managers receive) Use for internal and external analysis (microeconomic) Aggregating - CORRECT ANSWER >>> Finding the averages based on the data from a group of hotels so that each individual hotel is protected from exploitation of their specific data. Is individual property data ever disclosed to another property? - CORRECT ANSWER >>> No When are comp sets created? - CORRECT ANSWER >>> When the hotel opens Who chooses the comp set? - CORRECT ANSWER >>> Owner, management company, chain, gm, sales and marketing team What are things to consider when choosing a comp set? **- CORRECT ANSWER ** Participation Proximity Pricing
Changes in the market Strategic changes If you want to change your comp set, what must you do? - CORRECT ANSWER >>> Make a minimum of two changes and both must be in a different chain, parent company and management company; and both must be different from the subject hotel What is the exception to the change rule for comp sets? - CORRECT ANSWER >>> You can add a hotel that has been open for less than six months or can remove a hotel that has been closed for over three months Benchmarking in the hotel industry takes place at what level? Property level for an individual hotel versus their Competitive Set Corporate level for a hotel company, for example one brand versus others Geographic level for tourism organizations, for example city versus comparable cities All of the above levels - CORRECT ANSWER >>> All of the above levels
- Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes? Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various pricing decisions Comp sets can be used in management contracts for performance requirements Comp sets can have an effect on a general managers compensation All of the above are examples of how comp sets are used - CORRECT ANSWER >>> All of the above are examples of how comp sets are used The four key considerations when creating a Competitive Set are? Participation, Proximity, Policy and Product
Participation, Proximity, Pricing and Product Participation, Parking, Policy and Pricing Participation, Perimeter, Pool and Pricing - CORRECT ANSWER >>> Participation, Proximity, Pricing and Product
- All of the following are good reason for a hotel to have an additional competitive set, except which one? Have a local competitive set based upon geography and another based upon a special feature or niche, for example: waterpark, boutique, or conference Have different sets for weekday/weekend or group/transient business Have one set that you can easily beat and another which is a realistic target Different entities may not agree, for example, chain versus management company - CORRECT ANSWER >>> Have one set 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 once the hotel has opened A competitive set may be created while the hotel is under construction A competitive set may be created on the one year anniversary of a hotel's opening A competitive set may be created three months before a hotel opens **- CORRECT ANSWER
** A competitive set may be created while the hotel is under construction
- Who creates a competitive set for a chain hotel? Only the General Manager Only the Revenue Manager Only the Sales and Marketing Managers It is a joint effort involving many stakeholders - CORRECT ANSWER >>> It is a joint effort involving many stakeholders
Only when a hotel has a new general manager - CORRECT ANSWER >>> At any time, although many wait until the beginning of the year
- Which is NOT a valid rule related to changing a competitive set? If adding two hotels to a competitive set, both must be in different chains A single hotel may be added to a competitive set if it has been open less than six months A single hotel may be added to a competitive set at any time Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc. - CORRECT ANSWER >>> A single hotel may be added to a competitive set at any time How does STR obtain raw data? - CORRECT ANSWER >>> Directly exported from hotels. Companies send this information monthly, weekly, and daily. It can also be unloaded on the STR website. Supply - CORRECT ANSWER >>> Rooms X days in a month Demand - CORRECT ANSWER >>> Rooms sold by a hotel that does not include comp rooms or no shows revenue - CORRECT ANSWER >>> total room revenue, without tax What are the three key performance indicators - CORRECT ANSWER >>> Occupancy, ADR, Revenue per available room Occupancy - CORRECT ANSWER >>> The percentage of available rooms that were sold during a specific time period.
Calculation for occupancy - CORRECT ANSWER >>> Occupancy = Rooms Sold / Rooms Available (smaller number by bigger number) When will the percentage for occupancy be higher than 100% - CORRECT ANSWER >>> When the same rooms are being sold twice in a day ADR - CORRECT ANSWER >>> A measure of the average rate paid for rooms sold during a specific time period. Calculation for ADR - CORRECT ANSWER >>> Revenue/Demand (its a dollar amount) RevPAR - CORRECT ANSWER >>> A measure of the revenue that is generated by a property in terms of each room available What is the difference between ADR and RevPAR - CORRECT ANSWER >>> RevPAR is affected by the amount of unoccupied rooms, while ADR only shows the average rate of rooms actually sold. Calculation for RevPar - CORRECT ANSWER >>> Revenue/Supply (Dollar amount) Which should be lower ADR or RevPAR - CORRECT ANSWER >>> RevPAR Why is revPAR important? - CORRECT ANSWER >>> Its a combo of occupancy and ADR Percent Change - CORRECT ANSWER >>> illustrates the amount of growth (up, flat, or down) from the same period last year.
Hotel Book Keeping for Dummies Modern Hotel Industry Accounting - CORRECT ANSWER >>> Uniform System of Accounts for the Lodging Industry
- Which statement is true regarding raw data that is submitted to STR? A small amount comes in the form of raw data files Most data is entered online There are limited error check programs The majority of data is exported from the hotel company systems **- CORRECT ANSWER
** The majority of data is exported from the hotel company systems
- Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives? Daily only Daily and monthly only Daily, weekly, and monthly Daily, weekly, monthly and quarterly - CORRECT ANSWER >>> 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 Friday and Saturday Sunday thru Saturday Monday through Friday - CORRECT ANSWER >>> Sunday thru Thursday
- In which of the following situations will occupancy increase? Supply increases 10% and demand increases 5%
Supply decreases 10% and demand decreases 5% Supply increases 5% and demand decreases 5% Supply decreases 5% and demand decreases 10% - CORRECT ANSWER >>> Supply decreases 10% and demand decreases 5%
- Which statement is true regarding RevPAR? It is almost always higher than ADR It can be thought of as a combination of Supply and Demand When a hotel or GM is evaluated, the RevPAR metric is rarely considered It can be thought of as a combination of Occupancy and ADR - CORRECT ANSWER >>> It can be thought of as a combination of Occupancy and ADR How do you derive KPIS - CORRECT ANSWER >>> based upon the aggregated raw data for each separate hotel that is a member of the comp set. Index numbers - CORRECT ANSWER >>> numbers that compare the performance of the subject property to the comp set Formula for index numbers - CORRECT ANSWER >>> Subject Value / Comp Set Value * 100 What is another word for occupancy index - CORRECT ANSWER >>> MPI or penetration What is another word for ADR index - CORRECT ANSWER >>> ARI What is another word for RevPAR index - CORRECT ANSWER >>> RGI or yeild
