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diebeatsthegmat: Legendary Member; Posts: 1119; Joined: Fri May 07, 2010 8:50 amFollowed by: 3 members; Thanked: 29 times

by diebeatsthegmat » Thu May 05, 2011 6:16 pm

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.
Whether demand for office space in Cenopolis is projected to increase in the near future.
Whether the increased demand for hotel rooms, if met, is likely to lead to an increase in the demand for other travel-related services.
Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings
Whether, on average, hotels that have been created by converting office buildings have fewer guest rooms than do hotels that were built as hotels.

why B? i think E is way much better. the C is considering to have more hotel rooms by convert unoccupied office for increasing revenure. more guest leads more room needed and more revenue.
B just cares of whether demand for office will be needed in the future, it doesnt deal with what the C needs....

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Source: Beat The GMAT — Critical Reasoning | Thu May 05, 2011 6:16 pm

HSPA: Legendary Member; Posts: 1101; Joined: Fri Jan 28, 2011 7:26 amFollowed by: 13 members; Thanked: 47 times; GMAT Score:640

by HSPA » Thu May 05, 2011 6:39 pm

B is the only possible answer

C- out of scope - tour guide/travel services are not part of stem
E- stem has no reference that hotels made out of office space has poor infrastructure.

First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

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AIM GMAT: Legendary Member; Posts: 857; Joined: Wed Aug 25, 2010 1:36 amFollowed by: 15 members; Thanked: 56 times

by AIM GMAT » Thu May 05, 2011 9:55 pm

IMO B .

B is best beacause B will tell that if the demand of offices are going to increase or not ? If the demand for offfices increase then office will itslelf yeild a good income , so there is no need to convert it to hotel rooms if the builders are getting more income from offices .

E is talking about the number of rooms in office converted hotels [customized ones ] and the normal hotels , it doesnt seem relevant to argument , what are we supposed to know out of the comparison made in number of rooms , we cant reach to any conclusion .

Thanks & Regards,
AIM GMAT

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LIL: Senior | Next Rank: 100 Posts; Posts: 53; Joined: Tue Aug 03, 2010 3:09 amFollowed by: 27 members; Location: Los Angeles; Thanked: 8 times

by LIL » Fri May 06, 2011 5:10 am

diebeatsthegmat wrote:why B? i think E is way much better. the C is considering to have more hotel rooms by convert unoccupied office for increasing revenure. more guest leads more room needed and more revenue.
B just cares of whether demand for office will be needed in the future, it doesnt deal with what the C needs....

the question is whether or not it makes sense for centennial commercial to change its office buildings into hotels.

(b) works because if office buildings will be in high demand in the future, it might not make sense to change office buildings (which will be in high demand) into hotels (which will also be in high demand). after all, if office buildings and hotels are in equal demand, why would you spend money to convert one high-demand building into an equally high-demand building?

(e) does not work because it talks about converting office buildings vs. building hotels from scratch. since centennial is not even considering building hotels from scratch, this is irrelevant to the problem.

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novel: Senior | Next Rank: 100 Posts; Posts: 42; Joined: Mon Oct 18, 2010 11:39 pm

by novel » Sat May 07, 2011 12:49 am

diebeatsthegmat wrote: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.

why B? i think E is way much better. the C is considering to have more hotel rooms by convert unoccupied office for increasing revenure. more guest leads more room needed and more revenue.
B just cares of whether demand for office will be needed in the future, it doesnt deal with what the C needs....

the no of rooms sis irrelevant data.Since average rent of rooms has increased even few rooms can be profitable.However if demand is going to rise for offices then destroying offices for creating rooms may not be a good option.Hence B is better than E.

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diebeatsthegmat: Legendary Member; Posts: 1119; Joined: Fri May 07, 2010 8:50 amFollowed by: 3 members; Thanked: 29 times

by diebeatsthegmat » Mon May 09, 2011 9:12 am

LIL wrote:
diebeatsthegmat wrote:why B? i think E is way much better. the C is considering to have more hotel rooms by convert unoccupied office for increasing revenure. more guest leads more room needed and more revenue.
B just cares of whether demand for office will be needed in the future, it doesnt deal with what the C needs....
the question is whether or not it makes sense for centennial commercial to change its office buildings into hotels.

(b) works because if office buildings will be in high demand in the future, it might not make sense to change office buildings (which will be in high demand) into hotels (which will also be in high demand). after all, if office buildings and hotels are in equal demand, why would you spend money to convert one high-demand building into an equally high-demand building?

(e) does not work because it talks about converting office buildings vs. building hotels from scratch. since centennial is not even considering building hotels from scratch, this is irrelevant to the problem.

ohh what i understood after reading this argument is that they will rearrange the unoccupied official room to make a real hotel room or look like a real hotel rooms. you get it?

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LIL: Senior | Next Rank: 100 Posts; Posts: 53; Joined: Tue Aug 03, 2010 3:09 amFollowed by: 27 members; Location: Los Angeles; Thanked: 8 times

by LIL » Mon May 09, 2011 11:42 pm

diebeatsthegmat wrote:
LIL wrote:
diebeatsthegmat wrote:why B? i think E is way much better. the C is considering to have more hotel rooms by convert unoccupied office for increasing revenure. more guest leads more room needed and more revenue.
B just cares of whether demand for office will be needed in the future, it doesnt deal with what the C needs....
the question is whether or not it makes sense for centennial commercial to change its office buildings into hotels.

(b) works because if office buildings will be in high demand in the future, it might not make sense to change office buildings (which will be in high demand) into hotels (which will also be in high demand). after all, if office buildings and hotels are in equal demand, why would you spend money to convert one high-demand building into an equally high-demand building?

(e) does not work because it talks about converting office buildings vs. building hotels from scratch. since centennial is not even considering building hotels from scratch, this is irrelevant to the problem.
ohh what i understood after reading this argument is that they will rearrange the unoccupied official room to make a real hotel room or look like a real hotel rooms. you get it?

well...it doesn't matter how they make the hotel rooms. (e) says that converting an office building to a hotel is different from building a hotel. first of all, we have no idea if "different from" means "better" or "worse" (it says "on average, hotels created by converting office buildings have fewer guest rooms than do hotels built as hotels," but we don't know what this means). secondly, we're not talking about converting a building vs. building a hotel, we're talking about converting a building or not converting a building.

an example:

diego only has $2 in his pocket. he walks into an ice cream shop that only sells ice cream. he wants to buy an ice cream cone for $2. which of the following facts would be the most useful for diego to know?

(1) the bus home will cost diego $2
(2) apples are healthier than ice cream

the first statement is more useful, because it diego is trying to decide if he should buy or not buy ice cream. the second statement is not useful, because diego is not trying to decide whether he should buy ice cream or apples -- in fact, apples are not even for sale at the ice cream shop.

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