CHIA CHIA Financial Analysis & Hotel Accounting 2

Question 1

TRevPAR measures which of the following?

Accepted Answer

Total revenue per available room across all hotel departments

Answer

TRevPAR (Total Revenue Per Available Room) captures all revenue streams—rooms, F&B, spa, parking—per available room.

Question 2

Fixed costs in hotel operations are best described as:

Accepted Answer

Costs that remain constant regardless of occupancy

Answer

Fixed costs such as insurance, property taxes, and management fees do not change with the number of occupied rooms.

Question 3

What is a hotel's 'contribution margin'?

Accepted Answer

Revenue minus variable costs

Answer

Contribution margin is revenue minus variable costs, revealing how much each unit of revenue contributes to covering fixed costs and profit.

Question 4

Cost Per Occupied Room (CPOR) is primarily used to:

Accepted Answer

Analyze the expense efficiency of running occupied rooms

Answer

CPOR divides total rooms department expenses by occupied rooms, revealing how efficiently the hotel manages room-level costs.

Question 5

Labor cost percentage in hotel financial reporting measures:

Accepted Answer

Labor expenses as a percentage of total revenue

Answer

Labor cost percentage = total labor expenses ÷ total revenue × 100, and is one of the most closely watched efficiency ratios in hospitality.

CHIA - Certified in Hotel Industry Analytics Practice Test