Combined: Mid-Term Review

What cycles are of primary Interest to real estate developers?

CapEx or Capital Expenditure is part of the owner's initial and ongoing financial commitment to a hotel asset

In developing a hotel, it is important to factor in what percentage contingency above the general contractor's estimate?

Recognizing customer acquisition costs, revenue management now includes selling through the right distribution channel

In acquiring and absorbing the asset, what is an important aspect?

What action(s) can an AM take to increase profitability:

Why does no other commercial property type require as much ongoing attention as a hotel?

How did OTA’s deal with this new metasearch world?

The lowest customer acquisition cost of all channels is voice through a central reservations team

Value creation is the most important part of capital deployment - how could we assess whether a project will produce $$

Name 1 of the 4 Primary phases of the asset management cycle

What is CPC?

Historically, Revenue managers have only used historical booking information from the property management system

What is CPA?

What areas of responsibility does a developer have?

The design and pre-construction phase is vital to finalize both expected revenue and expenses per sq. ft.

What is a PIP?

What has been the driving force behind the escalation of customer acquisition costs

USALI provides additional details about ratio analysis and benchmarking and serves as a standardization tool for hotels

What are the channels available to brands?

Name 1 phase in hotel development

To unlock value and monitor performance of an asset, it is important for the AM to review budgets for ownership approval

If the existing zoning and entitlements will not allow a hotel development, what is the timeline for COU approval?

When developing a hotel, name a potential risk

Name 1 of the 5 criteria in developing an Asset Management Plan (AMP)

What are the 2 main areas of responsibilities for CapEx?

The standard goal for flow through or flex calculation is 50%

What checklist is a simple tool to keep action items in the forefront of the process from beginning?

What do brands have to do to overcome their dependance on third party channels?

It is not important to collect info from the local zoning/planning office to determine any new properties

Name one area of importance when benchmarking expenses

In disposing of the asset, what selling factor(s) must the AM consider?

A rule of thumb for a AM's for stabilized RevPAR Index is between 80% - 130%

What percentage of OTA bookings happen on page 1 of the OTA website

What is the name of the process/site developed to refine the search process for consumers?

Clear correlation with how much effort during this phase and the number of risks that can be addressed and eliminated

Asset Managers determine if the hotel is properly positioned in the marketplace using data benchmarks such as STR

Forecasting is the most difficult job in revenue management?

Walk-in and upsell strategies are considered keys to success for property direct business

Why do hotels tend to react the most quickly in the changes to the fundamental drivers within a real estate cycle?

In reviewing the performance of the hotel, it is important to use available resources such as

Customer acquisition costs have decreased, therefore it is not as important to pay attention to the source of demand

A feasibility report should be initiated to determine if the market can support hotel development.  

What is the primary goal of an AM? Choose the best answer available

There are 2 analysis techniques to analyze hotel performance, a SWOT analysis is one of them

Today, revenue managers use systems that include:

CapEx is generally any material expense that extends the life of the building, or improves the quality of the property

Name 1 construction contract type

Although there is significant empirical data, the true cost of CapEx over a hotel lifespan still remains elusive

Social media does not have an influence on CapEx.

What is a reason for significant increases or decreases in hotel's variance analysis?

What fundamental exercises does an AM complete to contribute to the goal of increasing the value of an asset

Creating value upon absorption can include:

It is not important to re-evaluate benchmarks when they are being met.