In any hotel, the property has an important role both for guests and staff members.There are many departments in a hotel that are needed to be maintained. These roles are need to be completed by everyone in the hotel to reduce risk. Risk management is one of the major concerns for any hotel, due to the unique problems that occur in the field of hospitality law. Common problems associated with risk management are slip-and-fall cases, crimes against guests, assault, rape, theft, discrimination against employees and guest, and lastly, payment issues.
Regarding how well kept the hotel is, other issues that may result to risk management are unlit or inadequate lighting in emergency stairways or on the exterior of the building, elevators that are unsafe or poorly maintained, and rodent problems. Hotels can also be sued for other reasons as well. This is why properties must be on their toes and be mindful for every possible hazard. This includes preventing using environmental hazards materials like housekeeping cleaning supplies and, chemicals. Must also be conscious of the cleanup of hazardous waste such as blood, or chemicals.
Other notions to keep in mind are the polishing of floors, snow, and trash removal near the vicinity. Lastly, another vital attribute to a hotel to minimize the risk of injuries is maintaining plumbing and electrical systems. These circumstances will help attribute to a safer environment for not only employees, but for guests. Keeping up with the latest technologies and awareness of cleanliness and hazards shall provide a safe atmosphere for everyone. Furthermore, the hotel should be maintained, not only by maintenance and housekeeping departments, but also by the rest of the hotel staff that may sense things are out of place and or any risk that may be present to further prevent any injuries at the property.
As risk management plays a fundamental role, business contracts are also a significant component to the hotel. “A contract is a legally enforceable promise or set of promises” (Bagley, C. E., & Dauchy, C. E. 2018 Pg.261) The credentials that must allow a contract to take into place consist of four elements. These elements are that the agreement must be between the parties that include an offer or acceptance. The second criteria is to have the parties promises supported by something of value known as consideration. Third, is that both parties must have the capacity and authority to enter into a contract. Lastly, the contact must have a legal purpose. (Contracts and agreements | Small Business. n.d.)
When analyzing the circumstances in which a contract may fail and or develop issues are negotiating whether the contract can be oral rather than paper. When doing so, the parties must come to a conclusion to see if the law can be enforceable. Issues that can be resulted by failing to put it in writing are that it will “render the contract unenforceable in court if the party asserts that the contract should have been in writing.(Bagley, C. E., & Dauchy, C. E. 2018 Pg.270) Another legal issue that a contract may come across is liquidated damages and timing. The importance of a contract is to make sure the other parties actions have been fulfilled. These include obligations, tasks, and time framing. Make sure to add deadlines to contracts to avoid misshapes from happening. This may lead to postponing crucial construction work, and or operation of items within the hotel. Ways to hinder this can include adding liquidated damages in the contract that align with time management if the duty was not performed in the appropriate time frame. Nevertheless, the contract should also emphasize a time frame in which the job can be completed in a safe manner to avoid injuries and or negligence in the property.(Bagley, C. E., & Dauchy, C. E. 2018 Pg.280-285)
Do you recommend your final project business lease or buy your property? Why?
The Peninsula Chicago hotel is a Full service 5-star luxury hotel. It is privately owned by the Hong Kong and Shanghai Hotels, Limited (HSH). Since it has already been a long standing hotel (built in 2001), the land were our property is standing on has already been brought by HSH. As we are the managing the hotel on behalf of HSH as “Peninsula Chicago”, We have concluded it was a wise decision by management to to outright buy this property. Below we have listed reason of why and why not buying is the best decision.
Pros:
You may have to have a consensus of your investors to make decisions, but the day-to-day operations are up to the GM.
Brand name (part of a chain)
Long-term financial gains
Able to create the building as you see fit and to your specifications
Able to lease out property inside to other companies and gain profits from them.
Able to sell building for profit
Not worrying about breaking leases clauses which can result in millions in losses.
Cons:
More taxes (property tax) which in our location (Chicago/Cook County) have very high taxes Need specialized lawyer to write up contract about purchasing real estate properties averaging from ($1,000 - $1500 and hour)
Liable for any damages to the building exterior and interior.
Investor groups focus more on profits rather than the guests.
Comments