Life House Onboarding - Hotel 101 Quiz

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Questions and Answers

Which of these is Life House NOT?

Hotel Management Company

Hotel Brand

Hotel Service Provider

Hotel Real Estate Investor (correct)

A hotel has 80 keys and is open year-round. Last year, the hotel achieved an occupancy of 77%. How many rooms were occupied last year? (use 0,000 format)

22,484

Which of these would NOT be included in FF&E budget?

Chair

Floor Tiling (correct)

Bedframe

Curtains

What is the average NOI Margin for a typical restaurant?

3-5% Signup and view all the answers

With variances in chain scale in mind, what range does a hotel's NOI margin likely fall into assuming an efficient operation?

25-40% Signup and view all the answers

Life House only uses its own proprietary software and no other third-party software to fuel the tech stack.

False Signup and view all the answers

Our current PMS consists of two parts: Rhythm and _______.

Mews Signup and view all the answers

A Channel Manager is a software system that connects a hotel’s PMS with distribution channels such as OTAs.

True Signup and view all the answers

What is the third most expensive tier on the hotel chain scale?

Upscale Signup and view all the answers

What is a rack rate?

The standard price that the hotel assigns to a room type Signup and view all the answers

How much do OTAs collect in exchange for listing hotel on their site?

15-25% of listed rate Signup and view all the answers

A 100-key hotel achieved a 55% occupancy in 2022 and was operated for 300 days. What was the hotel's RevPAR in 2022?

Need more information. Signup and view all the answers

Which of these is NOT part of a hotel tech stack?

PRS Signup and view all the answers

What does "Covers" mean?

The number of guests served in a restaurant or food service establishment during a specific period. Signup and view all the answers

How much do hotel management companies typically make for operating hotels?

3-7% of annual hotel revenue Signup and view all the answers

A hotel with 15 keys generated $657,000 in rooms revenue in 2022. It was open for 365 days and was 75% occupied. What is the RevPAR and ADR?

$120; $160 Signup and view all the answers

A lender is always involved in a hotel real estate deal.

False Signup and view all the answers

Life House can reduce all of the following costs, except for:

Merchant Processing Fees Signup and view all the answers

Which advantage do we have as a management company vs. majority of our competitors?

Our management approach can work in any market. Signup and view all the answers

What does our Revenue Management & Marketing System do?

All of the above Signup and view all the answers

Study Notes

Hotel Operations

A hotel with 80 keys is open year-round and achieved an occupancy of 77%, meaning 61.6 rooms were occupied last year.

Financial Terms

NOI (Net Operating Income) Margin for a typical restaurant is around 5-10%.
A hotel's NOI Margin likely falls into the range of 20-40% assuming an efficient operation.

Life House

Life House uses proprietary software and no other third-party software for its tech stack.
Life House's current PMS (Property Management System) consists of two parts: Rhythm and Opera.
Life House can reduce all costs except for debt service.

Hotel Tech Stack

A Channel Manager is a software system that connects a hotel's PMS with distribution channels such as OTAs (Online Travel Agencies).
OTAs collect a commission in exchange for listing a hotel on their site, typically around 15-20%.

Hotel Management

Hotel management companies typically make 2-5% of total revenue for operating hotels.

Performance Metrics

RevPAR (Revenue Per Available Room) is a key performance metric for hotels.
A 100-key hotel with a 55% occupancy and 300 operating days has a RevPAR of $44.55.
A hotel with 15 keys, 75% occupancy, and $657,000 in rooms revenue has a RevPAR of $119.45 and an ADR (Average Daily Rate) of $143.95.

Industry Insights

A rack rate is the maximum rate a hotel charges for a room.
The third most expensive tier on the hotel chain scale is Upper Upscale.
"Covers" refers to the number of guests a restaurant serves.
A lender is not always involved in a hotel real estate deal.
Life House has an advantage as a management company due to its proprietary technology and efficient operations.

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Description

After reviewing the Life House - Hotel Industry 101 Deck in full, please take this quiz to test your knowledge! Take your time to think through the questions carefully. You may use a calculator or Excel for the financial questions.

Please only take quiz ONE time! We will review your results and follow up with an answer key that includes explanations to each question.