Notel Hotel: Asset Management Presentation

Comparing the Two Management Contracts

• If Notel hotel is to be managed by the Florida Hotel Operations Inc. , their hotel operating agreement states the basic requirements that are required to run the business.
• The manager of the business has to report to the owner of the business at a regular basis.
• The running of the business is done by the manager but all the expenses and decision making of the business have to be approved by the owner of the hotel.
• The manager keeps all the legal documents like the permit, employs and discharges the workers. The manager does all the repairs, orders the supplies and deliveries besides overseeing the basic running of the hotel.
• The manager is able to access all the requirements from the owner whenever they are needed.
• The manager is in charge of the normal daily activities that are carried out in the institution.
• The manager coordinates the human resource of the company directly.
• He determines employee’s remuneration but with the consent of the owner.
• The manager is able to access all the things they require form the owner whenever they need them.

Alternative 2

• If Notel hotel agreement is operated by World Franchise System, the agreement states the requirements for the running of this hotel.
• The manager is in charge of running the business so that he/she is able to make all the decisions that they perceive as beneficial to the business.
• The manager is able to employ and discharge workers, besides making legal payments at the owner expense.
• The owner is obligated to provide income at all times in order to run the business.
• The operator acts solely over all the running of the business not in partnership with the owner but at the owners expense.
• The owner is able to elect their representative to conduct all the duties that they are meant to take care of. The owner also appoints an operator to manage the daily functionality of the hotel.

Preference

• The preferred management company is the Worldwide Franchise System.
• This company is able to run the business according to what the managers find most beneficial to the business.
• The company solely operates the business using the owners account for expenses.
• The company makes all the decisions solely so they are to blame if any bad outcome is experienced.
• The company should elaborate on all the issues the managers address.

Changes to incorporate

The company is elaborate on requirements:

Insurance

On the part of insurance, the agreement is ambiguous in comparison to the other company’s agreement. I would recommend that each of the required insurance polices are stated separately.

Event of Default

In events of a default, this company should state when such an action should be taken.

In comparison to the other companies, it does not account for the case of bankruptcy of the company and that should be included.

Casualties

In the case of any fire or damages occurring, the mentioning of involvement of any causalities being involved has not been addressed.

The compensation or taking care of accidental casualties should be considered in case of a legal proceedings that coming up.

Recommendations

• The Worldwide Franchise System is a well performed company that knows what the customer’s needs when it approaches a client.
• I would recommend to implement the changes on the insurance polices, casualties and in event of default.
• As for the FIU Asset Management llc., I would recommend the re-evaluation of the terms making the agreement more elaborate.
• It should describe the management process the way Worldwide Franchise system company has done (Hunghes, 2005).
• Considering the recommendation of any management company for any client, it should be stated that the Worldwide Franchise System is the better choice between this two.
• The Worldwide Franchise System has defined the term hotel as it will be used in the whole agreement.
• This is exclusive to every statement that will be included in the agreement.
• The owner gives all management of the business to the company, which is better than the conflict that can be occur if they both make decisions (Der Lei et al., 2012).

References

Der Lei, T., Herder, P. & Wijnia, Y. (2012). Asset management. New York: Springer.

Hunghes, D. (2005). Asset management In Theory And Practice. Chichago: New Age International.