Chapter 1: The Role of Facilities in the Hospitality Industry

What costs are included in Hospitality Facilities?

• Initial costs

• Operating costs

• Renovation costs

• All of the above

• None of the above

What are the Initial costs?

• Costs for operations

• Costs for renovation & modernization

• Costs for marketing

• Costs for design, develop & construct the property

What are the 2 elements that the construction is expected to return? 

• Brand Name & Real estate appreciation

• Real estate appreciation & Operating profit

• Operating profit, Real estate appreciation & Brand Name 

• None of them is correct

How many percentage of revenue does Operating costs account for in the Hotel Facilities?

• 2-5%

• 3-4%

• 7-9%

• More than 10%

One large expenditure category in Renovation Costs is …

• Construction costs

• Utilities

• Capital expenditures (CapEx)

• Marketing and Branding

The percentage of Renovation Costs is higher during the first couple of years after opening.

• True

• False

How many major areas is Facility Management involved in?

• 4

• 5

• 6

• 7

Proper repair & operation on Water Purification and Treatment systems is not related to "Safety and Security" in the Facilities Management. 

• True

• False

Legal compliance includes attention to building rules and regulations, health departments regulations, emission and environmental requirements.

• True

• False

Top priorities in Cost control include: 

• Utilities, construction, renovation and CapEx

• Utilities, operation, renovation and CapEx

• Utilities, maintenance, operation and CapEx

• Utilities, maintenance, construction, and CapEx