CHP - Certified Hospitality Professional Hospitality Financial Management Questions and Answers

Question 1

A 150-room hotel generated $2,400,000 in total revenue for the year.
Its total operating expenses for the same period were $1,500,000.
What is the hotel's Gross Operating Profit Per Available Room (GOPPAR) for the year?

Accepted Answer

$24.66

Answer

$16.44

Answer

$6,000.00

Answer

$9,000.00

Question 2

Which of the following would be classified as a cash flow from 'Investing Activities' on a hotel's Statement of Cash Flows?

Accepted Answer

Purchase of a new property management system (PMS).

Answer

Cash received from a bank loan to fund expansion.

Answer

Payment of dividends to shareholders.

Answer

Cash received from daily room sales and F&B operations.

Question 3

A hotel manager is preparing the annual budget and needs to plan for a major lobby renovation and the replacement of all guest room mattresses. In which section of the budget would these expenditures be primarily accounted for?

Accepted Answer

Capital Budget

Answer

Operational Budget

Answer

Marketing Budget

Answer

Cash Flow Budget

Question 4

The primary purpose of the Uniform System of Accounts for the Lodging Industry (USALI) is to:

Accepted Answer

Provide a standardized format for financial reporting to allow for reasonable comparison among properties.

Answer

Mandate specific accounting software for all hotels.

Answer

Set minimum wage standards for hospitality employees.

Answer

Guarantee profitability for hotel owners and operators.

Question 5

A hotel has an Average Daily Rate (ADR) of $250 and an occupancy rate of 80%. What is its Revenue Per Available Room (RevPAR)?

Accepted Answer

$200.00

Answer

$312.50

Answer

$250.00

Answer

$150.00

Question 6

Which financial statement provides a snapshot of a hotel's financial position, detailing its assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance Sheet

Answer

Income Statement (P&L)

Answer

Statement of Cash Flows

Answer

Annual Budget

A 150-room hotel generated $2,400,000 in total revenue for the year.Its total operating expenses for the same period were $1,500,000.What is the hotel's Gross Operating Profit Per Available Room (GOPPAR) for the year?

A 150-room hotel generated $2,400,000 in total revenue for the year.
Its total operating expenses for the same period were $1,500,000.
What is the hotel's Gross Operating Profit Per Available Room (GOPPAR) for the year?