CHIA Practice Test Video Answer

1. B
RevPAR stands for Revenue per Available Room, combining rate and occupancy.

2. B
The STR report helps compare a hotel’s performance against its competitive set.

3. A
Occupancy = Total Rooms Sold / Total Rooms Available.

4. B
ADR shows how well a hotel sells its rooms at average rates.

5. B
An MPI over 100 means the hotel outperforms the market in occupancy.

6. B
Demand represents the total number of rooms sold within a given time frame.

7. B
Competitive sets are selected by hotels for performance comparison.

8. A
Indexes compare hotel performance ratios to market averages.

9. B
RGI measures a hotel’s fair share of total market revenue.

10. B
RGI = Hotel RevPAR / Market RevPAR.

11. A
A falling RGI despite higher ADR Index means occupancy dropped relative to competitors.

12. B
Fair Share represents the market demand proportion a hotel should capture.

13. A
Higher occupancy with lower rates can signal poor revenue management.

14. A
High RevPAR but low ADR Index shows more rooms sold at cheaper prices.

15. A
STR requires at least 4 hotels, including one from another company.

16. B
Segmentation Data divides performance by group, transient, and contract.

17. B
Group and transient segmentation shows performance by room type and booking source.

18. C
150 ÷ 200 = 0.75 or 75%.

19. A
RevPAR = ADR × Occupancy → $150 × 0.8 = $120.

20. B
Comp Sets allow external benchmarking against similar competitors.

21. B
An RGI of 0.95 means the hotel earns 5% less than the market average.

22. A
Running 3-month data averages the past three months’ performance.

23. B
High MPI but low ARI indicates more rooms sold at lower rates.

24. B
ADR Index = Hotel ADR ÷ Market ADR.

25. A
STR confidentiality prevents viewing competitors’ individual data.

26. A
Percent change helps compare current performance to the same period in the prior year.

27. B
ADR = Total Room Revenue ÷ Total Rooms Sold.

28. B
Occupancy, ADR, and RevPAR are key benchmarking metrics.

29. C
High ADR with low occupancy often needs strategic rate adjustments.

30. B
CHIA aims to strengthen skills in hotel performance analysis.

31. B
Percent change shows performance difference vs. the same period last year.

32. A
Segmentation Analysis identifies revenue contribution from different guest types.

33. C
An RGI of 100 indicates performance matches the market average.

34. A
An Occupancy Index of 110 means the hotel sold 10% more rooms than market average.

35. B
STR reports are typically weekly and monthly.

36. B
Stable ADR with declining RevPAR typically signals reduced occupancy.

37. B
Competitive sets allow benchmarking against similar hotels to understand market positioning.

38. A
Rolling 12-month data shows seasonality and long-term performance.

39. B
Trend reports show long-term performance for historical analysis.

40. A
An RGI over 100 shows RevPAR growth exceeding the market.