Exam 4: Lodging

Two major challenges of lodging franchising are avoiding financial failure by the franchisee and: • Slow growth in the industry • Decreased use of central reservation systems by guests due to increased availability of internet booking options • Up-front fees are too high for potential franchisees • Maintaining quality standards

In exploring the possibility of becoming a franchisee, what are five potential benefits?

__________ properties represent 15 percent of total hotel rooms and have experienced tremendous growth.

Franchising hotels began in 1907 by: • Howard Johnson • Ritz-Carlton • Holiday Inn • Hyatt

Explain the importance of sustainable lodging and list two steps a hotel can take to decrease their environmental impact.

All of the following are trends in hotel development except: • Safety and Security • Globalization • Sustainability • Social networking

Another step many hotels are taking to conserve resources includes replacing showerheads with low flow devices. These can save _____________ gallons of water for every 5 minutes of shower. • 5 • 10 • 3 • 7

Lighting can account for _____________ to _____________ percent of commercial electricity consumption • 10; 20 • 20: 30 • 30; 40 • 40: 50

Hotels that provide residences as well as rooms for guests to book are known as __________ .

Marriott builds a hotel for $34 million and sells it to an investment firm for $52 million. Marriott charges the investment firm 2-4% of gross revenues to operate the hotel. This type of transaction is known as a: • Franchise agreement • REIT • Vacation ownership • Management contract

Vacation ownership • Is not popular today • Is known for deceptive marketing practices • Began in the French Alps in the 1960's and is one of the fastest growing segments of U.S. travel and tourism • Is only popular in Europe and Australia

The __________ hotel industry is beginning to reshape the U.S. economy as a significant segment of the entertainment industry.

What are five factors involved in the growth of franchising?

One of the more unusual hotels in the world is the __________ hotel where guests have a space of 7 feet by 7 feet including the bed and television.

Due to the seasonality of resorts, one of the many challenges faced by managers is: • Creating interesting buffet menus for adults and children • Attracting, training and retaining competent staff • Providing a variety of activities for all guests • Competing with local hotels for guest business

The largest lodging enterprise in the world is: • Holiday Inns • Sheraton • Intercontinental Hotel Group • Marriott

Management contracts became popular in the 1970's because: • Up front fees were minor compared to franchises • Maintaining quality standards was not required • Little or no up front financing or equity was required • Ownership reverted to insurance companies

Trading publicly and distributing about 95% of net income to shareholders, this type of ownership allows investors ease in getting in or out of the purchase rather easily: __________ .

Describe the benefits and potential drawbacks of vacation ownership

Marriott builds a hotel and sells it for a generous profit. The hotel company runs the hotel for a set number of years and receives a fee for this service. This type of ownership is known as a __________ .