Practice_Prelim_1_Answers_Solutions

Practice_Prelim_1_Answers_Solutions - Practice Prelim 1...

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Practice Prelim 1 Fall 2007 ANSWER KEY For each of the following questions, select the single best answer and fill in the corresponding bubble. I. OVERVIEW (70 points) 35 questions @ 2 pts. each 1. On hotel development projects, saying that a developer has “skin in the game” means that: (a) The developer is investing some of his or her own funds in the project (b) The developer is also a bank or other lending institution (c) The developer is also a hotel operator (d) The developer has had many past successes in hotel development (e) The developer is also a basketball player 2. Student question! Which of the following does not describe a real asset? (a) A REIT (b) A golf course (c) A lawn mower (d) A car (e) The Four Seasons Philadelphia 3. Student question! A real asset should be redeveloped or sold when: (a) Investment Value > Market Value (b) Investment Value > Reversion (c) Investment Value < Cost (d) Replacement Value > Investment Value (e) Replacement Value = Market Value 4. What effect do liens have on hotel real estate? (a) Liens increase the value of a hotel property until they are satisfied (b) Liens decrease the value of a hotel property until they are satisfied (c) Liens increase the replacement value of a property (d) Liens decrease the replacement value of a property (e) Liens have no effect on hotel property value 5. Student question! Which of the following does not add value to the Statler Hotel? (a) Its location on the Cornell campus (b) Its connection to the School of Hotel Administration (c) Its ADR (d) The latent demand in Ithaca in May and August (e) Its occupancy in early January
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Practice Prelim 1 Fall 2007 ANSWER KEY For questions 6-15, select the project type from the list below that best matches the planning and/or design considerations listed below. Possible responses: (a) Boutique Hotel (b) MXD (c) Ski Resort (d) Convention Hotel (e) Conference Center 6. Provision for informal gathering and refreshment areas away from meeting space E 7. Counter-cyclical revenue streams B 8. Flexible function space D 9. Bar on the ground floor facing south C 10. Unusually high proportion of back-of-house areas D 11. Efficiency in land use, construction and financing B 12. Emphasis on the natural environment C 13. Emphasis on the small meetings market E 14. Adaptive reuse of urban buildings A 15. Smaller than average guestrooms A 16. The development team member responsible for arranging for total project financing is most likely to be: (a) The developer
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This homework help was uploaded on 02/19/2009 for the course H ADM 255 taught by Professor Srobson during the Fall '07 term at Cornell University (Engineering School).

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Practice_Prelim_1_Answers_Solutions - Practice Prelim 1...

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