Re: Over the last five years, demand for hotel rooms in Cenopolis has incr
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05 Jan 2023, 02:20
Over the last five years, demand for hotel rooms in Cenopolis has increased significantly, as has the average price Cenopolis hotels charge for rooms. These trends are projected to continue for the next several years. In response to this economic forecast, Centennial Commerical, a real state developer, is considering a plan to convert several unoccupied office buildings it owns in Cenopolis into hotels in order to maximize it's revenue from these properties.
Type -Evaluate
Boil it down - Plan to convert several unoccupied office buildings it owns in Cenopolis into hotels in order to maximize it's revenue from these properties.
Pre-Thinking - Whether these office buildings are likely to remain unoccupied in the near future
Which of the following would it be most useful for Cenennial Commerical to know in evaluating the plan it is considering ?
A.Whether the population of Cenopolis is expected to grow in the next several years. Irrelevant
B.Whether demand for office space in Cenopolis is projected to increase in the near future. Correct
C.Whether the increased demand for hotel rooms, if met, is likely to lead to an increase in the demand for other travel-related services. Out of scope
D.Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings. Irrelevant
E.Whether, on average, hotels that have been created by converting office buildings have fewer guest rooms than do hotels that were built as hotels. Out of scope
Answer B