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Over the last five years, demand for hotel rooms in

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Re: Over the last five years, demand for hotel rooms in [#permalink]

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New post 04 Feb 2016, 05:14
I feel the "Option E" goes beyond the argument. It might sound true in real life scenario.

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New post 24 Sep 2016, 04:35
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
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Over the last five years, demand for hotel rooms in [#permalink]

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New post 04 Oct 2016, 10:38
Both B and E seem ok to me.

The slight difference is that B recognize Centennial Co. as a real state developer, and not as a hotel builder. The masterplan was to build office buildings and get revenue out of them.

Therefore, turning this entire plan into something else is secondary.

Now, if the masterplan has a slightly chance to work, let's stick to it.

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New post 07 Dec 2016, 01:40
I could not decide between B and E and ended up choosing E.

I do not think B is 100% clear, the question mentions that demand for hotel rooms is increasing significantly, whereas choice B just says "Whether demand for office space in Cenopolis is projected to increase in the near future." - even if demand for office space does increase, what if it just increases by a little bit and not significantly? If office space demand only increases a little bit then it does not justify not converting the office buildings into hotels.

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New post 17 Dec 2016, 23:11
What would you want to know if you were the developer? I, for one, would want to know if I am maximizing my potential revenues by converting space to hotel rooms. Clearly B.

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Re: Over the last five years, demand for hotel rooms in [#permalink]

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New post 03 Jan 2017, 15:44
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 inot hotels in order to maximize it's revenue from these properties.


Which of the following would it be most useful for Cenennial Commerical to know in evaluating the plan it is considering ?

Whether the population of Cenopolis is expected to grow in the next several years.
(Out Of Scope) since we are not considering the factors that have led to the rise in the demand.
Whether demand for office space in Cenopolis is projected to increase in the near future.
Most appropriate answer since if the demand for the office space also rises then ther is n need for additional investment for converting the building to hotel.Although the statistics are not provided to make it a concrete choice ,it is still the most appropriate answer choice.
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 of the arguments)
Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings
(Out Of Scope as only Cenopils hotel demands are discussed)
Whether, on average, hotels that have been created by converting office buildings have fewer guest rooms than do hotels that were built as hotels.
The choice provides a valid arument but it is irrelevant in the current scenario as the builder will anyway save money in converting the already existing building rather than building new ones as Hotels

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New post 06 Jun 2017, 20:03
I think E is wrong.
It is because the plan is about converting, not building new ones. Also, we cannot know anything about fewer guest rooms. We do know converting is enough to maximize the revenues; building new ones may or may not maximize the revenues.

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Re: Over the last five years, demand for hotel rooms in [#permalink]

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New post 06 Jun 2017, 20:53
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IMO B
Option B gives us additional reason from which we can evaluate the argument to convert office space into hotels .
If office space is going to rise then the plan to convert office to space will not be successful .


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Re: Over the last five years, demand for hotel rooms in [#permalink]

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New post 11 Sep 2017, 22:44
Hello Experts

I want to understand , actually what this question tries to test ?
Sometimes we get advice do not think out of box too much , but here answer B Require Out of Box thinking,
If a person just read the argument but no option , he/she will tend to find an option which will support the growth of travellers to the place then only the converted office to hotel will be occupied and so more profit.


All the argument is based on Travelers, hotels, profits but in last the answer is having only Office as main Point
I know after we see the answer we tend to physiologically bent towards answer that also when we have GMAC verified answer.
here lots of people have given the valid reasons but all seems to be assumption like, Converting Office to hotel will take too much money, Developer will give preference to Office only, however nothing is Mentioned in Question,

Let me ask a simple question if Profit for Hotels have suddenly Increased to 5- 10 times (My assumption) I believe the even developer will stsrt considering the office space to convert it to hotel , Profits matters.

However in the question nothing is mentioned about Profit from office is more or From hotel, all argument talk abut hotels and its profit then how can answer be B.


So want to say that question's answer will Vary on person Mind set , somebody can think of converting the office space to Hotels to get early Profits, or some can wait for opening office,

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Re: Over the last five years, demand for hotel rooms in   [#permalink] 11 Sep 2017, 22:44

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