CHP Hospitality Management & Operations 2 — Questions and Answers
Question 1: A hotel's RevPAR dropped 12% year-over-year despite stable occupancy. What is the most likely cause?
- Increased operational costs
- Decreased Average Daily Rate (ADR) (Correct answer)
- Higher guest satisfaction scores
- Expanded room inventory
Correct answer: Decreased Average Daily Rate (ADR)
RevPAR = Occupancy × ADR, so if occupancy is stable but RevPAR falls, ADR must have declined.
Question 2: Under the Fair Labor Standards Act (FLSA), which hospitality workers are typically exempt from overtime pay requirements?
- Front desk agents earning $12/hour
- Salaried managers earning above the federal threshold (Correct answer)
- Part-time banquet servers
- Hourly housekeeping staff
Correct answer: Salaried managers earning above the federal threshold
Salaried employees performing executive, administrative, or professional duties above the federal salary threshold are exempt from FLSA overtime provisions.
Question 3: Which inventory control method is most appropriate for perishable food items in a hotel restaurant?
- LIFO (Last In, First Out)
- FIFO (First In, First Out) (Correct answer)
- Weighted Average Cost
- Specific Identification
Correct answer: FIFO (First In, First Out)
FIFO ensures older perishable stock is used before newer stock, reducing spoilage and waste.
Question 4: A convention hotel charges $45 per person for a coffee break package. If 200 attendees are expected and actual food cost is 28%, what is the projected food cost?
- $1,260
- $2,520 (Correct answer)
- $9,000
- $6,480
Correct answer: $2,520
Total revenue = 200 × $45 = $9,000; food cost = $9,000 × 0.28 = $2,520.
Question 5: What does the term 'comp set' refer to in hotel competitive analysis?
- A set of complimentary amenities offered to VIP guests
- A group of comparable competitor hotels used for benchmarking (Correct answer)
- The total compensation package for department heads
- Complimentary room upgrades tracked monthly
Correct answer: A group of comparable competitor hotels used for benchmarking
A competitive set (comp set) is a defined group of similar hotels used to compare performance metrics like occupancy and ADR.
Question 6: During a fire emergency in a hotel, what is the FIRST priority for all staff?
- Securing cash drawers and valuables
- Contacting the general manager
- Guest and staff evacuation and safety (Correct answer)
- Calling the insurance company
Correct answer: Guest and staff evacuation and safety
Life safety is always the first priority in any emergency; evacuation must begin immediately before any administrative actions.
Question 7: Which scheduling approach helps a hotel minimize labor costs while maintaining service levels during unpredictable demand periods?
- Fixed scheduling for all departments
- Flex staffing or cross-training employees (Correct answer)
- Hiring full-time staff for every shift
- Eliminating part-time positions
Correct answer: Flex staffing or cross-training employees
Flex staffing and cross-training allow managers to deploy staff where needed most, optimizing labor costs against variable demand.
CHP Hospitality Management & Operations 2
A hotel's RevPAR dropped 12% year-over-year despite stable occupancy.
What is the most likely cause?