Opening A Hotel in China: Almost There with My Budgets

By Feature Writer Yoland Perras

Update

IT

Budget reviewed, re-submitted and in principle agreed. Critical dates or Timeline will be issued once approved by Owning Company. Having this budget approved, will ensure Company compliance and help to work seamlessly with our many valuable corporate programs and customers.

Due to lack of knowledge, Owners are often reluctant to spend on Information Technology program and systems. Clear and comprehensive presentation from your IT specialist, strong support from the Company and GM, are often key to understanding the "Why we need such tools". In today's world of technology, this is not an area to be overlooked.

I have already secured my IT Manager who will then follow-up on purchasing, delivery, installation and all related trainings. As you know, there will be quite many, which I will be more than happy to join. I may not be able to do them all yet I have some where I want to participate to improve my knowledge.

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HOE

My Purchasing Manager is now on board and will officially start to work alongside the Purchasing section of the Owning Company.

We have issued our Purchasing flowchart where, process, actions and areas of responsibilities are clearly identified. Then we have reviewed our initial Supplier Sourcing lists and submitted to Owning Company.

The Sourcing list will then be split by departments for ease of reference and quicker actions. Next step is for both Purchasing teams to assess and start driving the process. Then this where the fun really starts.

We have added additional suppliers in accordance with Owner's internal policies. So in some cases, we can have up to 10 different sources providing samples and pricing.

As example, on my previous assignment as pre-opening GM, I had to choose between 12 different suppliers of Banquet chairs. Action back, no Action back, stackable, not stackable, hard, soft, arms, no arms. Not mentioning that I had to explain why I chose this better (and more expensive) one over a similar rather poor looking chair. In the process of trying the Action back of some, I broke a few before making selection of the final product. For cost purposes, you need to go through the process with the Owner and be patient. Imagine doing the same for Forks and Knives, Plates and Cups, Pots and Pans and more.

After that preliminary but unavoidable process, the purchasing teams, Owners and Hotel comprised of GM, FC, Key department and Purchasing Manager, will make final selection based on the criteria of quality, pricing, durability, availability and Hotel company own standards.

POB

Well this one is more complex, requires more explanation and of course more review. Minor adjustments have been made but most importantly I was able to secure the all too important Training funds that Owners wanted to reduce. Still under negotiation.

Almost there

We are making slight progress for completion of these Budgets. I have set myself a target date for all to be approved. Once my key Executives join the existing group of 4, I will have no time to "leisurely" look, review and re-submit.

When the pre-opening machine with its multi task Critical path effectively starts, it will be time to concentrate on the assigned goal.

I realize (and am excited) that soon my team will more than double. Tasks will more than triple and most importantly interaction with Associates, Suppliers and Owners will reach different levels. While I will still wear my "construction hat" I will have to wear my "Captain's Hat", run communication meetings, have Critical Path follow-up meetings, prepare Sales & marketing plan, Room and F&B pricing strategy, and formalize Food & Beverage concepts. Soon, I say to myself, soon.

Does it Itch?

Of course it does. I can understand some of my colleagues who feel "itchy" after considerable time in opening their new property. This feeling is slowly coming to me. As I have mentioned before, some colleagues opened after more than 3 years.

We, Hotelier, have a need for connection with PEOPLE. We, Hotelier, have a need for "SERVICING PEOPLE". We, Hotelier, love to perform the art of Greetings. We love to spend time in our "Lobbies". We love to walk-around and chat with guests. We love the discussion with Associates. So I am ready to roll and intend to re-capture all the above feelings soon.

Add-on

Now that I have open my mouth too many times concerning design and construction issues, I have been fortunate, starting this November, to have one weekly add-on meeting to discuss technical issues directly with my Owners who will (or will not) then instruct the Construction company accordingly. Makes sense is it not? Part of your responsibility is to shake things up so that everyone moves in the same direction. As my adopted father use to say "Do not be afraid to speak your mind".

Yoland Perras
General Manager
Sheraton Wuhan Hankou Hotel

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