As for the entrusted management of Wanhua, its core principle is adopting international popular conventions and standards with adaptive adjustments in specific clauses, which can give more power to owners and ensure to establish trustful and win-win long-term cooperation relationships with owners.
The core principle of the entrusted management is that management company takes charge of the operation and management in a manner of relative independence and owners are responsible for administering the approval and budget of assets and supervising the management company, namely, owners reserve the complete control of hotel assets, manage the usage of hotel funds through examining and approving hotel budgets, and supervise the management company to operate and manage according to the appointment listed in the Contract. The management company shall ensure to exert specialized ability and resources sharing basically according to its own method so as to gain the maximum reward for owners .
For owners with the intention to cooperate with Wanhua, we will submit Memorandum of Cooperation (basic cooperation intention clauses) to owners and reach consensus on major cooperation intentions with owners after confirming the hotel market prosperity, cooperation method, functions and layouts of the hotel and construction standards. On that basis, we will discuss and sign Technical Consulting Agreement before the Opening of Wanhua Hotel and Management and Marketing Service Agreement of Wanhua Hotel with owners to determine all related cooperation details.
If owners want to gain the fixed benefit, Wanhua can adopt cooperation method of lease operation.
Based on the demand of owners and project conditions, we can adopt flexible lease operation methods, for example, we can lease one hotel under operation ,or we can lease and operate it after decoration invested. If we invest funds to decorate, a clearer market expectation would be required for the investment reward of the hotel, and we hope that the hotel is located in the core city with strong consumption ability.