In General FF&E Reserves in a Hotel Should Average What

question 5

Multiple Choice

In general FF&E reserves in a hotel should average what percent of a hotel's gross revenue?

• A) Less than 2%
• B) 2-4%
• C) 5-7%
• D) 8-10%

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Definitions:

Inelastic Supply

Describes a situation where the quantity supplied of a good changes by a smaller percentage than the percentage change in its price.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption or generate revenue for public purposes.

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.

Burden

Often used in the context of taxation or regulations, indicating the weight of responsibility or negative impacts placed on individuals or organizations.