Practice_Prelim_1_Answers - 100608 SKAR Prelim 1 Page 1 For...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
100608 Prelim 1 SKAR Page 1 For each of the following questions, select the best answer and fill in the corresponding bubble. I. OVERVIEW (60 points) 35 questions @ 2 pts. each 1. An example of a “demand generator” would be: (a) Families coming to town to visit relatives (b) A large themed amusement park like Disney World (c) A very attractive lobby (d) High speed internet in all the guestrooms (e) A business person on a sales trip 2. Which of the following describes the difference between a financial asset and a real asset? (a) A real asset must be sold at face value in order to generate a monetary gain (b) A real asset represents only a promise to pay from a government, company, or individual (c) A real asset is something tangible that brings value to the owner (d) A real asset does not appear on a balance sheet (e) A real asset generates no value until it is sold 3. Based on the material covered in Lecture 2, which of the following is the best way to calculate investment value for an operating hotel? (a) Investment Value = PV of Market Value (b) Investment Value = PV of Reversion (c) Investment Value = PV of (TR – TE) + PV of Reversion (d) Investment Value = PV of (TR – TE) – PV of Reversion (e) Investment Value > Replacement Value 4. Which of the following is most likely to join the development team as a lender? (a) A REIT (b) An opportunity fund (c) A pension fund (d) A bank (e) A hotel operator 5. Which of the following represents a change in the supply of hotel rooms? (a) An increase in the number of conventions booked (b) The reflagging of a Ramada as a Holiday Inn (c) A fire that shuts down a hotel for a year (d) Both (a) and (b) (e) Both (a) and (c) 6. Condo hotels used to be a very popular as a hotel development approach because: (a) They used fewer construction materials and thus were cheaper to build (b) They required smaller plots of land than other kinds of hotels (c) They could be sold as timeshares (d) They allowed the developer to raise funds without having to borrow as much from lenders (e) They worked in any setting with any market segment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
100608 Prelim 1 SKAR Page 2 7. Michael Sansbury ’74 stated that he thinks condo hotels will never again be popular as a hotel development approach because: (a) The financial model for these projects didn’t work for the condo buyers (b) The financial model for these projects didn’t work for the hotel operators (c) There are no longer enough viable sites available (d) They did not appeal to business travelers (e) The laws have been changed to make condo owners pay rooms tax 8. If several major hotels in New York City decide to convert to condos but hotel room demand stays consistent, what happens to city-wide occupancy and what happens to the value of the remaining hotels? (a)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/23/2009 for the course HADM 2255 taught by Professor Robson during the Spring '08 term at Cornell University (Engineering School).

Page1 / 9

Practice_Prelim_1_Answers - 100608 SKAR Prelim 1 Page 1 For...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online