Free Certified Lodging Owner (CLO) Exam Questions and Answers
Certified Lodging Owner (CLO) is one of the AHLEI tests covered here. AHLEI runs more than twenty separate certification programmes spanning line-level hotel roles through to general management, so entry requirements and exam length differ enormously across them. Every credential is a C-initialism where the first C stands for Certified — though note CHA is Hotel Administrator, the general-manager credential, rather than Hospitality like the rest.
If you searched for Certified Lodging Owner (CLO) dumps, an ExamTopics discussion or a free PDF, this is the question bank for it: practice questions with verified answers and explanations, a timed practice test and updates whenever AHLEI changes the exam.
Last updated: October 20, 2026
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Question #1
The owner of a limited-service hotel pays a non-exempt housekeeper $15.00 per hour. The housekeeper worked 46 hours in one workweek, and no other pay premiums apply. Under the Fair Labor Standards Act, what is the housekeeper's gross pay for the week?
Correct answer: C
Explanation
The FLSA requires overtime at 1.5 times the regular rate for hours over 40 in a workweek. Pay is 40 x $15.00 = $600.00 plus 6 x $22.50 = $135.00, for $735.00. Paying straight time ($690.00) ignores the premium, and double time ($780.00) is not required by federal law.
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Question #2
An investor buys a hotel for $5,000,000, using $1,500,000 of equity and a mortgage for the balance. In the first year, net operating income is $600,000 and annual debt service is $380,000. What is the cash-on-cash return on the investor's equity?
Correct answer: B
Explanation
Cash-on-cash return is pre-tax cash flow divided by equity invested. Cash flow is $600,000 - $380,000 = $220,000, and $220,000 / $1,500,000 = 14.7%. The 12.0% figure is the overall return on price (NOI / price), and 40.0% ignores debt service.
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Question #3
A 90-room hotel earned rooms revenue of $194,400 in a 30-day month and sold 1,620 rooms during that month. What was the hotel's RevPAR for the month?
Correct answer: C
Explanation
RevPAR is rooms revenue divided by rooms available. Rooms available are 90 x 30 = 2,700, so $194,400 / 2,700 = $72.00. Dividing by rooms sold would give ADR ($120.00), and dividing by 2,400 available rooms would give $81.00.
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Question #4
Under federal immigration rules, an employer must complete Section 2 of Form I-9 for a new hire within how many business days after the employee's first day of work?
Correct answer: B
Explanation
The employee completes Section 1 no later than the first day of work, and the employer must complete Section 2 within three business days of the start date. Employers must review original documents showing identity and work authorization.
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Question #5
An appraiser estimates that a hotel will produce a stabilized net operating income of $540,000 after the reserve for replacement. Comparable hotel sales indicate an overall capitalization rate of 9%. Using the direct capitalization method, what is the indicated value of the hotel?
Correct answer: D
Explanation
Under direct capitalization, value equals NOI divided by the cap rate: $540,000 / 0.09 = $6,000,000. Multiplying NOI by 9 gives $4,860,000, and a 10% rate would give $5,400,000.
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Question #6
Under the FTC Franchise Rule, a franchisor must give a prospective franchisee the Franchise Disclosure Document at least how many calendar days before the franchisee signs a binding agreement or pays any money?
Correct answer: D
Explanation
The FTC Franchise Rule sets a 14-calendar-day waiting period between delivery of the disclosure document and signing or payment. This gives the prospective owner time to review fees, obligations, and litigation history.
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Question #7
A room is shown in the housekeeping report as on-change. What does this status mean?
Correct answer: D
Explanation
On-change means the guest has checked out and the room still has to be cleaned and made ready. A room needing repairs would be coded out of order, and a stayover room is still occupied. A cleaned room awaiting inspection is a different step in the status cycle.
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Question #8
Lenders commonly use the debt service coverage ratio (DSCR) when evaluating a hotel loan request. How is DSCR calculated?
Correct answer: C
Explanation
DSCR is net operating income divided by annual debt service (principal and interest). A ratio above 1.0 means income covers the payments, and lenders typically require a margin above that. Loan amount divided by value is the loan-to-value ratio, which is often confused with DSCR.
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Question #9
An owner of a 96-room hotel finds that the hotel's occupancy last year was 68 percent, while its competitive set averaged 74 percent. What is the hotel's market penetration index?
Correct answer: B
Explanation
Market penetration index equals the hotel's occupancy divided by the competitive set's occupancy, times 100: 68 / 74 x 100 = 91.9. A value below 100 means the hotel is capturing less than its fair share of occupied rooms. Inverting the fraction gives 108.8, which is the common error.
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Question #10
Under the federal Fair Labor Standards Act, a nonexempt hotel employee must be paid overtime at what rate for hours worked beyond 40 in a workweek?
Correct answer: D
Explanation
The FLSA requires nonexempt employees to receive at least one and one-half times their regular rate for hours over 40 in a workweek. Double time is not required by federal law, though some states or employers apply it in certain cases. Exempt salaried employees are not covered by the overtime requirement.
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Discussion
Explain your reasoning, not just the letterOther AHLEI certifications
- Certified Lodging Security Director (CLSD) (opens in a new tab)
- Certified Maintenance Employee (opens in a new tab)
- Certified Guestroom Attendant (opens in a new tab)
- Certified Hospitality Housekeeping Executive (CHHE) (opens in a new tab)
- AHLEI-CHA: Certified Hotel Administrator (opens in a new tab)
- Certified Breakfast Attendant (opens in a new tab)
- Certified Front Desk Representative (opens in a new tab)
- Certified Hospitality Trainer (CHT) (opens in a new tab)
- Certified Guest Service Professional (CGSP) (opens in a new tab)
- Certified Kitchen Cook (opens in a new tab)
- Certified Food and Beverage Executive (CFBE) (opens in a new tab)
- Certified Hospitality Facilities Executive (CHFE) (opens in a new tab)
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FAQ
Learn More: https://www.ahlei.org/
- Q1: What is the Certified Lodging Owner (CLO) exam?
- A: Certified Lodging Owner (CLO) is a AHLEI certification exam. Judging by the questions in our bank, it concentrates on hotel, guest, staff, room and guests.
- Q2: What topics does the Certified Lodging Owner (CLO) exam cover?
- A: Questions in our Certified Lodging Owner (CLO) bank cluster around hotel, guest, staff, room, guests and satisfaction. Working through the full set is the quickest way to find which of these you are weakest on.
- Q3: How should I prepare for Certified Lodging Owner (CLO)?
- A: Work through the Certified Lodging Owner (CLO) practice questions here, checking your answer on each one, then sit the practice test to rehearse the exam under timed conditions before the real thing.
- Q4: Are these real Certified Lodging Owner (CLO) exam questions?
- A: They are drawn from officially released past questions and from community members who have sat Certified Lodging Owner (CLO). Answers are verified and updated weekly.
- Q5: Where do I register for the Certified Lodging Owner (CLO) exam?
- A: Register through AHLEI directly. Exampractice is not affiliated with AHLEI and does not administer the exam.
- Q6: Is there a free Certified Lodging Owner (CLO) sample?
- A: Yes. Every Certified Lodging Owner (CLO) page shows a free sample of real questions. Upgrading opens the full bank and the practice test.
- Q7: What are AHLEI Certification Exams?
- A: AHLEI (American Hotel & Lodging Educational Institute) Certification Exams validate your expertise in various aspects of hospitality management, including hotel operations, food and beverage management, sales, marketing, and hospitality education.
- Q8: Why should I pursue AHLEI Certification?
- A: AHLEI Certification enhances your professional credibility, demonstrating your skills and knowledge in hospitality management. This can lead to better job opportunities, higher salaries, and career advancement in the hospitality industry.
- Q9: What are the benefits of AHLEI Certification?
- A: Benefits include recognition as a certified hospitality professional, improved job performance, access to exclusive resources, networking opportunities, and staying current with the latest industry trends and best practices.
- Q10: Who should take AHLEI Certification Exams?
- A: Hospitality professionals, including hotel managers, front office staff, food and beverage managers, sales and marketing personnel, and hospitality educators, should consider these certifications to validate their expertise and advance their careers.
- Q11: What types of AHLEI Certification Exams are available?
- A: AHLEI offers various certification paths, such as Certified Hotel Administrator (CHA), Certified Hospitality Supervisor (CHS), Certified Food and Beverage Executive (CFBE), Certified Hospitality Sales Professional (CHSP), and Certified Hospitality Educator (CHE), each tailored to specific roles and expertise levels in hospitality management.
- Q12: How do I prepare for AHLEI Certification Exams?
- A: Preparation can include official AHLEI training programs, study guides, practice exams, online courses, and hands-on experience in hospitality management.
- Q13: Where can I take AHLEI Certification Exams?
- A: AHLEI Certification Exams can be taken at authorized testing centers worldwide or online, providing flexibility to fit your schedule and location.
- Q14: How do AHLEI Certifications impact my career?
- A: AHLEI Certifications significantly boost your career by demonstrating your expertise to employers, making you a more competitive candidate for advanced roles and promotions in the hospitality industry.
- Q15: Are there any prerequisites for AHLEI Certification Exams?
- A: Some exams may have prerequisites, such as foundational knowledge or prior experience in the hospitality field. Check the specific requirements for each certification path on the AHLEI website.
- Q16: How often do I need to recertify for AHLEI Certifications?
- A: AHLEI Certifications typically require continuing education and recertification every five years to ensure that certified professionals stay updated with the latest hospitality management practices and industry standards.