Purchasing: Entertainment

Objective ：

It is imperative that certain guideline be established to ensure that the people entertained are entirely in the interest or for the business of the Hotel.

Procedure :

Pre-Opening Stage  

1. During the pre-opening stage, due to establishing rapport with various external parties, business entertainment is an essential. The pre-opening stage is broken up into 2 parts, i.e. prior to handling over of various operating outlets and after the handover, but not officially opens.

2. Prior to operation of the various outlets, entertainments need to be conducted externally. A written approval Entertainment Request Form (ERF) from the GM is required**. It’s ideally that arrangements with some establishments (including with sister-hotels) were established by the Sales Department for preferential/discounted rates during this period.

** Do not include entertainment during travel, as a travel budget needs to be prepared and approved prior to the business trip.

Hotel in operation  

1. Entertainment is inevitable in hotel business, considering it is carried out to enhance revenue (travel agent, corporate accounts as product providers) and maintain rapport with community, government bodies, hotel peers, business partners and employees.

2. Entertainment may be conducted either in-house or outside*. Outside entertainment should however be kept to the minimum, as this is not cost effective and image building exercise. However, regardless of the form of entertainment, both sorts of entertainments require the authorization of the General Manager or his designate, in his absence.

3. Entertainment should be at all times planned rather than ad hoc. This allows the outlet concerned to make necessary preparation and waiting staff to be briefed accordingly. This also allows all parties concerned to pre-relocate the outlet should the need raised.

4. Nevertheless, it is at times unavoidable that in such circumstances we have to entertain our guests without obtaining prior written approval from the management. If this is the case, the department head concerned should get verbal approval from the GM and he/she is required to submit the written approval form (ERF) to Finance Department on the next working day by 12:00 p.m. Any unapproved entertainments are chargeable to the department head concerned city-ledger at 50%, net of service charge and tax.

* External entertainment must be supported with ‘ENTERTAINT REQUEST APPROVAL in order to claim.

Operation Procedure

1. Department head concerned should obtain the approval ENTERTAINMENT REQUEST FOR (Attachment 1) from GM or his designate in his absence prior to any entertainment by completing the ERF. See form below.

2. The ERF upon approval is submitted to the outlet Captain, where the entertainment will be hosted.

3. The ERF must be finally attached to the entertainment checks (EC) as the supporting.

4. If prior permission had not been obtained e.g. due to ad hoc arrangement or over a cup/glass of coffee/tea/juices with client(s), the EC must detail the name of the company/room no. and person(s) entertained and the reason for entertaining and subsequently submitted to the GM for approval.

5. At the end of each month, a summary of entertainment prepared by the Cost Control is attached together with Food & Beverage Cost Control Monthly Report for review.

6. As mentioned above, any unapproved entertainment, the EC will be charged to the individual city-ledger.

7. Handling guests’ grievances – no prior approval is required, but all relevant details must be stated clearly in the EC