GMAT Critical Reasoning
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 Commercial, a real estate developer, is considering a plan to convert several unoccupied office buildings it owns in Cenopolis into hotels in order to maximize its revenues from these properties.
Which of the following would it be most useful for Centennial Commercial to know in evaluating the plan it is considering?
- A Whether the population of Cenopolis is expected to grow in the next several years
- B Whether demand for office space in Cenopolis is projected to increase in the near future
- 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
- D Whether demand for hotel rooms has also increased in other cities where Centennial owns office buildings
- 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
Correct Answer: B