Hospitality Industry Overview & Market Trends Flashcards

STR's chain scale segments are primarily based on which factor?

Answer: Actual system-wide average daily rate of the brand

Chain scales group branded hotels by their actual system-wide ADR.

Which of the following is NOT one of STR's chain scale segments?

Answer: Boutique

Boutique is a property style, not an STR chain scale; the scales run Luxury through Economy plus Independent.

An 'asset-light' strategy for a major hotel company means it primarily:

Answer: Earns fees through franchising and management contracts rather than owning hotels

Asset-light companies generate fee income from brands and operations while third parties own the buildings.

A market sees room supply grow 4% while room demand grows 2% over the same year. What is the most likely effect on market occupancy?

Answer: Occupancy decreases

When supply grows faster than demand, occupancy falls because more rooms are available per room sold.

Extended-stay hotels typically differ from traditional transient hotels by having:

Answer: A longer average length of stay and in-room kitchen facilities

Extended-stay products target guests staying five or more nights with kitchens and lean service models.

Which phase of the hotel development pipeline represents the most certain future supply?

Answer: Under construction

Projects under construction have committed financing and are least likely to be cancelled.

Which customer segment typically books hotel rooms the furthest in advance?

Answer: Group and meetings

Group business such as conferences is usually contracted months or years ahead.