operations manual 734

INTRODUCTION

OPERATIONS MANUAL

The following pages represent the policies and procedures of HP Hotels , herein known as HPH, to be followed in the sound operation of our Hotel assets. These policies and procedures are intended to be minimum guidelines to affect the most cost efficient standardized method of operation within the hospitality industry for the benefit of guests, investors, shareholders and associates. In all cases, sound business practice, good judgment and the Mission Statement of HP Hotels LLC will be controlling principle adding further input to this Operations Manual. It is not our purpose to cover all instances, factors, or circumstances regarding the operation of a superior quality Hotel property. It isour intention to standardize the guidelines under which we operate to provide forour sustained and profitable growth in this and future years.

MISSION STATEMENT

→To develop, acquire, operate and sell – for a profit – limited facility hotels in the

southeastern United States.→To add value to our shareholders’ and partners’ investments by achieving

above – market R.O.I.→To operate all our hotels at a quality level that benefits our guests and our

shareholders.→To make money and have some fun!

LEGAL DISCLAIMER

Terms of UseUnless otherwise indicated, this Manual and its contents are the property of HP Hotels, Inc andand/or its subsidiaries, affiliates, or assigns (collectively "HP"), and are protected, without limitations, pursuant to U.S. and foreign copyright and trademark laws. By utilizing this Manual,you agree to the following terms and conditions. If you do not agree, you have the absolute right to submit your resignation, and you should do so.

The works made available in this Manual are protected by United States copyright laws and are provided solely for the use of HP Hotels Management personnel in context of the safe and profitable operation of our hotel assets. Dissemination or sale of any of these policies, as a whole or in parts (including on the World Wide Web), destroys the integrity of such works and is not permitted. The materials should never be made available to those not authorized and/or bound by their use. All users are expected to abide by these restrictions and to honor the intended purposes and the needs of those on these materials. No intellectual property or other rights in and to thisManual or its contents, other than the limited right to use set forth above, are transferred to you. You may not modify, copy, distribute, republish, commercially exploit, or upload any of the material on the World Wide Web without the express written consent of the HP Hotels Group Managing Members.

General TermsHP Hotels MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THIS MANUAL OR ITS CONTENTS, WHICH ARE PROVIDED FOR USE "AS IS." HP Hotels DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED.

To the fullest extent permitted by applicable laws, HP Hotels and its employees, agents, suppliers, and contractors shall in no event be liable for any claims, charges, and contractors damages, liabilities, losses, and expenses of whatever nature and howsoever arising, including, without limitation any compensatory, incidental, direct, indirect, special, punitive, or consequential damages, loss of use, loss of data, loss caused by a computer or electronic virus, loss of income or profit, loss of or damage to property, claims of third parties, or other losses of any kind ofcharacter, even if HP Hotels has been advised of the possibility of such damages or losses, arising out of or in connection with the use of this Manual.

RECEIPT/ACKNOWLEDGEMENT OF OPERATIONS MANUAL

I ____________________________, have received the HP Hotels Printed Name of Manager/AssociateOperations Manual. I understand that this manual remains the property ofHP Hotels and must be returned upon request. I further understand that it is my responsibility to update the Operations Manual as policies, formsand information are provided in the appropriate format.

BY: __________________________________Signature of Manager/Associate

DATE:________________________________

HP HotelsOPERATIONS POLICY MANUAL

TABLE OF CONTENTS

ACCOUNTINGS.O.P. Section I I – 1 Petty Cash/Debit CardI – 2 Bad Debt Write-OffI – 3 A/R/ AgingI – 4 Capital ExpendituresI – 5 Trade AgreementsI – 6 A/R Direct BillingI – 7 A/R Collection/Sample LettersI – 8 Internal AuditI – 8A Quarterly “Self-Audit” SurveyI – 9 Advance Deposit – SalesI – 10 Baggage Service ChargeI – 11 Pre-Opening ExpenseI - 12 Credit ApprovalI – 13 Purchase OrdersI – 14 ChargebacksI – 15 Check Register/LogI – 16 Salvage Sales – Fixed AccessI – 17 A/P TransmittalI – 18 System Back-Up

ADMINISTRATIONS.O.P. Section II II – 1 GeneralII – 2 DonationsII – 3 Associate Work SchedulesII – 4 National ContractsII – 5 Lease Agreements/ContractsII – 6 Associate AppreciationII – 7 ForecastII – 8 Payroll ProceduresII – 9 Uniform NametagsII – 10 Pre-Employment ProceduresII – 11 Loss Incident ReportII – 12 Comp Room PolicyII – 13 Gifts/ConflictII – 14 Guest Comment/Survey

ADMINISTRATIONS.O.P. Section II II – 15 Hazard Communication PolicyII – 16 Inspection ReportsII – 17 Master KeysII – 18 MeetingsII – 19 MembershipsII – 20 MOD ProgramII – 21 Organizational ChartII – 22 Performance AppraisalII – 23 P&L StatementII – 24 Passwords/CombinationsII – 25 Vendor VerificationII – 26 Illegal ActivityII – 27 Emergency ProceduresII – 28 GM ChecklistII – 29 Out of Service RoomsII – 30 Environmental CommitmentII – 31 Travel AllowancesII – 32 Mileage Reimbursement

FOOD & BEVERAGES.O.P. Section IIIIII – 1 Special PromotionsIII – 2 MenusIII – 3 Restaurant OperationsIII – 4 Lounge EntertainmentIII – 5 InventoriesIII – 6 Beverage Policy StatementIII – 7 Banquet OperationsIII – 8 Beverage Prices/Happy HourIII – 9 Complimentary FoodIII – 10 Security F&BIII – 11 Food StorageIII – 12 Advance Deposit PolicyIII – 13 Payment of Service ChargesIII – 14 Accounting In-House Outlet ChargesIII – 15 ServSafe Certification

FRONT DESKS.O.P. Section IV IV – 1 V.I.P. ProceduresIV – 2 ADA/Mobility GuestIV – 3 Innkeepers Shelter/Check-In AgeIV – 4 No – Show PolicyIV – 5 Pet Policy

IV – 6 Safety Deposit BoxIV – 7 Check Cashing/Cash AdvanceIV – 8 PBXIV – 9 Credit Card/Telephone Fax OrdersIV – 10 Group RatesIV – 11 Published Room RatesIV – 12 Guest Mail/MessagesIV – 13 Registration Cards

HOUSEKEEPINGS.O.P. Section V V– 1 Amenity ProgramV – 2 Mattress Rotation/PestsV – 3 Laundry RequirementsV – 4 Lost & FoundV – 5 Linen InventoryV – 6 Deep CleaningV – 7 Required Bed Card

MAINTENANCES.O.P. Section VI VI – 1 PM Program/SafetyVI – 2 Elevator TestingVI – 3 In Room/Package A/C UnitsVI – 4 Housekeeping Equipment PMVI – 5 Utility Meter ReadingVI – 6 Fire DrillsVI – 7 Smoke Detectors/Emergency LightingVI – 8 Maintenance RequestsVI – 9 Associate AreasVI – 10 Key ControlVI – 11 Pool Maintenance

SALESS.O.P. Section VII VII – 1 Call QuotaVII – 2 Market Analysis ShareVII – 3 Advertising Print MediaVII – 4 Service MarksVII – 5 Group Room ControlVII – 6 Public RelationsVII – 7 Group Conduct LetterVII – 8 Hotel/Meeting WebsiteVII – 9 Group Rate Procedures

HUMAN RESOURCESS.O.P. Section VIIIVIII - 1 Grievance ProceduresVIII - 2 RecruitmentVIII - 3 Job DescriptionVIII - 4 Labor UnionsVIII - 5 4-Step Wage PlanVIII - 6 OrientationVIII - 7 ReferencesVIII - 8 Pre-Employment ScreeningVIII - 9 Associate Activity LogVIII - 10 Attendance RecordVIII - 11 Diverse WorkplaceVIII - 12 EEO-1 FilingVIII - 13 OSHA FilingVIII - 14 Educational Sign off Sheet

SECTION I AREA S.O.P. 1ACCOUNTING

PETTY CASH/DEBIT CARD Page 1 of 1

Petty cash funds are intended to be used for small necessary purchases. These items would include: postage due, freight bills, vending refunds, small items, hardware and supplies whose need was not anticipated. Debit Card funds are intended for use of larger purchases such as: gift/suite shop purchases, employee appreciation, office supplies and/or an emergency situation.

Procedure for Petty Cash:1. The General Manager is completely responsible for the petty cash fund.2. Individual petty cash transactions should not exceed $50.00. (exception for F&B C.O.D. purchases).3. Each disbursement should be properly supported by a petty cash voucher.4. Each petty cash voucher shall be properly completed as follows:

a. Date. e. Amount of transaction.b. Description of item purchased. f. Purpose of purchase.c. Person disbursing the petty cash. g. Person receiving PC.d. Approved by the General Manager h. Completed in ink

5. Each voucher must be supported by an invoice, sales slip or other documentation evidencing the nature of the disbursement. These documents should be stamped “PAID” to prevent their re-use.6. The petty cash transmittal is required to be completed and submitted toHP Hotels Accounting department according to the accounting report checklist due date.7. All voucher and supporting documents must be attached to the original petty cash report and maintained on property for seven (7) years.

Procedure for Debit Card:1. The General Manager is completely responsible for the Debit Card andfunds used.2. The Debit Card can only be used by and merchandise receipts signed offby the authorized signer (General Manager).3. Each disbursement should be properly supported by receipts.4. The Debit Card transmittal is required to be completed and submitted toCHA Systems, Inc. according to the report checklist due date.5. All receipts and supporting documents must be attached to the originaldebit card report, stamped “PAID” and maintained on property for seven(7) years.


BAD DEBT WRITE OFF Page 1 of 2

To establish procedures and guidelines for the write-off of bad debt. Accountsare submitted for write-off under the following circumstances:

a. When all practical and reasonable collection efforts have failed (includinglegal action, if appropriate), and the account is determined uncollectible.b. Because of the amount and/or circumstances involved, it is not consideredpractical or cost justifiable to pursue the collection of the account.

The General Manager is responsible for determining those accounts to besubmitted for write-off. All Bad debt write offs must be signed for approved by Regional Director of Operations

PROCEDURES:1. A write-off summary request should be prepared of city ledger accounts tobe written-off the books and the reason. The list of write-offs shouldminimally provide for:

a. The transaction date as shown on the monthly aging report.b. The name of the account as shown on the monthly billingstatement.c. The amount.d. The reason for requesting write-off (Skip – cannot locate, companyout of business, bankrupt, bad check, etc.).e. The signature of the General Manager and Regional Director of Operations.

2. Each account should have an Accounts Receivable Activity sheetattached which shows all the steps that deem the account uncollectible.3. All hotels are required to submit all requested accounts and their supportto the corporate office for approval before they write off any account.4. Bad debit Write-Off’s should be reviewed, approved and processed(booked) prior to the end of the accounting period each quarter (i.e.March15th, June 15th, September 15th, and December 15th).5. The original, approved write-off form with attached account detail shallremain on property for future reference.


BAD DEBT WRITE-OFF Page 2 of 2

6. All recoveries of bad debts previously charged off are to be credited to theallowance for doubtful accounts.Current Reserve $______________________BAD DEBT RECONCILATION RECAPBalance at beginning of current year $____________________Plus allocations, year-to-date $____________________Plus recoveries, year-to-date $_____________________Less write-off year-to-date $_____________________Balance at close of current period $_____________________By:____________________________ _____________________General Manager Signature DateBAD DEBT PERFORMANCE, YEAR-TO-DATEYear-to-date net write-offs $_____________________Plus allocations, year-to-date $_____________________Total bad debt expense, year-to-date $_____________________Year-to-date total revenue $_____________________Percent loss to total revenue ____________________%By:______________________________ ______________________General Manager Signature DateCurrent A/R/ Aging 30 Day 60 Day Total


ACCOUNTS RECEIVABLE AGING Page 1 of 1

Most PMS systems now automatically age each night during the night auditfunction.

A month end aging report needs to be forwarded to the corporate office when themonth end IJ (income journal) is sent. Items of 60+ days must be accompaniedby all supporting data.

Some brands may require facility to use the HP Hotels Accounts receivable aging form found below


CAPITAL EXPENDITURES Page 1 of 1

The purpose of this policy and procedure is to ensure proper accounting for fixedasset acquisitions.

1. Definition: Expenditures in excess of $500.00 to acquire landimprovements, building, machinery, furniture and fixtures, office equipment,business machines and other capital items, whether by purchase orconstruction and for major alterations, rearrangement or repair to existingfacilities.Purchase of capital items with an individual value of less than $500.00 are tobe expensed except in the following circumstances:a. When the item(s) are an integral part of a capital project:b. When the aggregate cost of identical or closely related items,purchased under one purchase order exceeds $500.00 in total.

2. Determination of Cost: The capitalized cost of a fixed asset is to include allcosts in connection with its acquisition, including purchase price, deliverycosts, freight, installation costs, sales, excise or other taxes applicable.Also, any other cost required to prepare the asset for its intended use.

3. Capital Expenditures vs Current Expense: In distinguishing between acapital expenditure (fixed asset addition) and a current expense (repairs andmaintenance), value and time are the elements of major importance. Indistinguishing between a capital expenditure (fixed asset addition) and acurrent expense (repairs and maintenance), value and time are the elementsof major importance. You must determine of the expenditure adds to thevalue of the building, furniture and equipment, etc or extend their useful life.According to tax authorities, examples of repairs include re-painting the outsideand inside of a building, mending leaks, plastering and conditioning gutters onbuildings. On the other hand the costs of a new roof, lighting improvements in afactory, and bricking up windows to strengthen a wall are capital expenditures.

NOTE: Capital expenditures may only be authorized by an officer of HPH.Capital expenditures are all purchases that are capital in nature must have aPurchase Order prepared on site with proper approvals and sent to HPHCorporate Office for approval before the order of these items can be completed.


TRADE-OUT AGREEMENTS Page 1 of 1

All Hotel Trade-Out agreements must have Regional Director of Operations approval. Thisincludes but not limited to: room and tax, advertising and promotions and/or foodand beverage.


A/R DIRECT BILLING PROCEDURES Page 1 of 1

The procedure listed below will ensure timely distribution of all direct billingaccounts.

PROCEDURE:

1. Upon completion of the night audit, the auditor will print two (2) folio copiesfrom the previous days check outs and place in the designated (GM or designate) mail box.

2. The folio’s are to be reviewed for accuracy and any adjustment required willbe taken care of without delay.

3. One copy of the statement and folio to be processed and sent to the accountand the second copy to be retained by the hotel and properly filed.

4. A reminder statement should be sent for unpaid balances between the 25th

and 30th of the month.

5. Brand reward program billing should be forwarded and submitted accordingto the brand standard.

6. All direct bill statements should be mailed within 24 hours of departure –Fed-Ex if appropriate.

When payment is received and before posting to the account the amount shouldbe verified. Should you receive and overpayment or incorrect amount the check, the company must be contacted for verification prior to being posted. All checks must be secured in hotel safe until deposited.


A/R COLLECTION PROCEDURE Page 1 of 2

The procedure below will provide a means for the timely processing andcollection follow-up of customer statement of accounts and dunning notices.

PROCEDURE:

1. Past due accounts (over 30 days), must be contacted to verifyinvoice/statement has been received. Notes should be taken regardingdiscussion and outcome of call.2. The use of an outside collection or letter writing service should beconsidered the “last resort” after all the hotels reasonable collection effortshave been exhausted. The personal involvement and responsibility of thehotel General Manager cannot be over emphasized with accounts of thisnature.3. The engagement of an outside collection service is governed by HP HotelsCorporate Offices.4. Outside collection services will be furnished (photocopies only) of accountdetail and not the original document.5. Accounts in the hands of a collection service will be reported individuallyon the monthly aging report as usual; except “collection service” should benoted along with the date the account was turned over.6. Accounts turned over to a collection service will normally be fully reserved,but should not be submitted for write-off until collection efforts have beendiscounted by the service.7. Upon discontinuing the collection activity, the service must return theaccount documentation (photocopies) to the hotel.8. Invoices and collection letters must be mailed in accordance with thefollowing schedule (all days from the guest check out date).9. We will not accept any future reservations or bookings from a client of 30days past due until balance has been cleared. (Unless otherwise approved per agreed upon billing cycle)Guest Check Out (last folio transaction) 0 DayAccount Transferred to A/R +1 DayFirst Invoice/Statement Sent +1 DaySecond Invoice/Statement Sent +30 DaysThird Invoice/Statement Sent +45 DaysFirst Collection Letter +60 Days

NOTE: In reference to small balances, the General Manager will determinewhen the account is not economical to pursue. Such accounts should besubmitted to write-off.


A/R COLLECTION PROCEDURE Page 2 of 2

GUIDELINES FOR COLLECTION LETTERS

Delinquent Accounts:

1st Letter – A “friendly reminder”. This letter should be courteous and shouldnot, in any way, infer that the guest does not intend to pay. It should reciteour previous billings and date.

2nd Letter – Send certified mail. Reference previous invoices and the firstletter. Firmly but politely insist on immediate payment and advise client thatbilling privileges are in jeopardy.

Collection letters should be generated through the Front Office System orcomparable system depending on your property using the Dunning Message”listed below and the attached sample correspondence letters.Start using this feature immediately.Dunning Message:Current: Payment is due within 30 days of the transaction date.+45 Days This amount is seriously past due, your prompt attentionis appreciated.+60 days This amount remains past due. Your payment is expected.Your account may be suspended.

(Sample letters #1,#2, appear on the following pages)Attach other letters HP has from transition guide here

Sample Letter #1Date ___________________Name __________________________________ Account # ____________Company Name __________________________Company Address_________________________City, State, Zip ___________________________Dear _____________________,Thank you for choosing __________________________________for yourrecent stay in -----City-----. Hotel NameIn today’s fact paced world, time goes by quickly. As of today your account in theamount of $_____________ is 30 days past due. Perhaps there are questionspertaining to your billing. Please contact me as soon as possible to resolve anyoutstanding issues.We hope that you will continue to use _________________________ for yourfuture accommodations. Hotel NameBest Regards,General Manager000-000-0000Sample Letter #2Date _________________Name _____________________________ Account #___________________Company Name _____________________Company Address____________________City,State,Zip ________________________Dear ____________________,In our previous letter of (date) we stated that your account was past due. As oftoday your account in the amount of $______ is over 60 days past due.Again, if you have any questions pertaining to this past due balance, pleasecontact me. Your billing privileges may be in jeopardy. Please give this matteryour immediate attention. If payment has been remitted, please disregard thisnotice.Best Regards,General Manager000-000-0000

SECTION I AREA S.O.P. 8ACCOUNTING I

NTERNAL AUDIT Page 1 of 1

Internal Audit is an independent appraisal of activity within HPH which examinesand evaluates:

1. The adequacy and effectiveness of the system of internal control.2. The adequacy of plans.3. The quality of performance against plans, established objectives and goals.PROCEDURES1. The “Self Audit Survey” (Exhibit 8A) will aid the internal auditor inevaluating the existing procedures at each location.A. Scope of Audits;a. Cashb. Accounts receivablesc. Revenue & Expensed. Accounts Payablee. Payrollf. Food & Beveragea. purchasing d. issuingb. receiving e. controlsc. storageg. Other pertinent areash. Inventory & operating supplies2. The principal responsibilities of the Auditor is to provide management withan independent, fast and objective appraisal of the effectiveness of thecompany’s financial accountability systems and operational performancein accordance with their standard operating procedures.3. The Audit will provide management with positive recommendationsdesigned to strengthen and improve performance results and costeffectiveness of their operations.4. Format of Audit ReportA. ObservationB. StrengthsC. WeaknessesD. Recommendations for Improvement5. A written response is required by the General Manager for all auditreports within 30 days after the issuance of the report.


ADVANCE DEPOSIT POLICY (SALES) Page 1 of 2

Advance deposits serve several purposes. They provides an indicator of theintention of the prospective customer, allow for an edge against possible loss andallow the Hotel recovery of costs should the account become non-collectable.As a general rule, advance deposits of up to 90% of the estimated value of thebusiness should be obtained at least two (2) weeks before the function for thefollowing types of business:

SALES GROUPS1. Sports teams in non-established leagues or sports2. Social or family gatherings3. Politically oriented groups4. Tour groups are required to send the 1st night’s deposit upon confirmationof business or 30 days prior to arrival, whichever occurs last and thebalance must be paid upon arrival.

PROCEDURESWhen the booking of a group or function becomes definite and the contract iscompleted, this should include the deposit requirement necessary to hold theroom and assure the facility that has been committed. Should deposit requestnot be honored by the prospective customers, the possibility of not beingafforded the rooms required should be clearly conveyed. The details of thecancellation penalties, if any, would also be explained.This requirement is not meant as a deterrent to booking business, but as ameasure to safeguard the asset of the company. When presented properly andfirmly, requests for advance funds should bring affirmative responses.

NOTES:1. Do not offer direct billing to the client, but do discuss forms of payment.2. If a customer desires to be billed, a credit application must be presentedand filled in thoroughly and returned to the General Manager two (2) weeksprior. The General Manager must verify a minimum of three (3) references.3. Incomplete application or those credit applications not received within two(2) weeks of arrival will not be processed.4. Credit application for business of $5000.00 must be signed by an official ofthe company requesting direct billing and a copy of the business credit cardmust be submitted for guarantee purposes.


MEETING/CATERING DEPOSIT SALES Page 2 of 2

MEETING ROOMAny time a meeting room is reserved the client should be told that $100 depositis required to hold the room and the remainder of the amount is due upon arrivalto the hotel. Posting of the deposit should be done upon confirmation of theroom in the PMS system.

CATERINGWhenever catering is involved the $100 deposit is required to hold the functionroom. Thirty (30) days prior to the function the client will be contacted and thecatering arrangements confirmed. At this time, 50% of the catering charge willbe collected. Final payment is to be collected when the guarantee is confirmed(3 business days prior to the function). All deposit postings should be at eachinterval. It is also imperative that the guest understands if there is a change inthe count (+ or-) will be handled on the day of the function.Please make sure when collecting deposits for a meeting room and/or cateringfunction, cancellation policies are understood by the client in writing.


BAGGAGE SERVICE CHARGES Page 1 of 1

Baggage service that is required by any groups will be paid to the designatedassociate(s).

1. Baggage service is part of a group bill to be paid to the associate(s) forservice performed.

2. All baggage service charges must be paid through the Hotel payrollsystem.


PRE OPENING EXPENSES Page 1 of 1

DEFINITION: Pre-opening expenses are those expenditures which arereasonable and necessary in connection with the opening of a specific newproject.

1. Expenses chargeable to “Pre-Opening Expenses” are those expendituresincurred prior to an opening which would otherwise have been chargeableto an operating expense had they not been in connection with a “new”project.2. Pre-opening expenses do not include expenditures for acquisition ofcapital assets which are subject to depreciation.3. Pre-opening expenses include, but are not limited to the following:A. advertising and business promotions prior to openingB. supplies and other operating expenses such as:1. Menus2. Guest checks3. Logo items4. Napkins5. Initial supply inventory (kitchen,bar,cleaning,guest,etc)6. Uniforms7. Training8. Licenses & taxes9. Salaries and benefits of personnel10. Opening Party & Sales Blitz11. Travel4. An asset account called “Pre-Opening Expenses” should be set-up for allnew projects or acquisitions. All pre-opening expenses should be movedto this account via journal entry after opening.5. Pre-Opening Expenses for new projects or acquisitions are to beamortized on a straight line basis over five years.


CREDIT APPROVAL Page 1 of 2

Some business practice dictates that we should thoroughly establish guestidentity and credit worthiness prior to approving any credit privileges. Approvaland investigation of company requests for direct billing of their accounts restswith the General Manager or corporate office as appropriate.The credit investigation and approval procedures presented in this S.O.P. areintended as general guidelines.

PROCEDURES1. Credit InvestigationA. Companies – except where the hotel has long standing, satisfactorycredit experience with a company or organization, a creditinvestigation must be performed and documented. The use of aStandard Credit Application (located under forms) is to be used forthis purpose. All items/references on the form must be verified (bytelephone or letter) prior to credit approval. Comments on anydifference between information given by the applicant and thatobtained by verification should be entered on the reverse side ofthe application form. Any other pertinent information (slow pay,problem accounts, etc) should also be noted on the form.In addition to the company’s bank and business references, local credit bureaus,business associations and the like may be available sources of creditinformation.NOTE: In addition to establishing the company’s credit worthiness, it is essentialthat a principal of the company provide the hotel with a written authorization forthe individual(s) to incur charges on behalf of the company. Preferably, theauthorization should be on company letterhead stationary, signed by a principal.Any limits on this authority (such as “room only”, etc) must be clearly stated in theauthorization letter.B. Distressed Passengers/Tour Agents/Operators – Normally, theextension of credit to tour operators, distressed passengers andtravel agents will involve the acceptance of :paper” (vouchers,coupons, M.C.O.’s etc), which is redeemable in specified roomnights and/or services and is payable by the operator or sellingagent when billed.When dealing with an agent/operator with whom the hotel has had no previousbusiness experience, banking and business references should be obtained andverified as in the case of any other credit applicant.


CREDIT APPROVAL Page 2 of 2

C. Individual – Under most circumstances, the extension of direct billcredit privileges to individuals is not recommended. Where theextension of credit is justified, however, banking and businessreferences should be obtained and verified in the same manner asfor a company.2. ApprovalThe approval of direct billing credit privileges shall be made by theGeneral Manager. This approval authority may not be delegated.3. DocumentationThe Standard Credit Application properly completed and approved, and/orother documentation supporting the credit investigation and approval shallbe maintained for a minimum of one year after the account has been paidand has evidences no further activity.NOTE: The guest/client’s credit application should be updated whenever anaccount has been inactive for six (6) months, or more, or whenever additional ormore credit information is needed to increase limits, etc.Additional Notes:1. Do not offer direct billing, but do discuss forms of payment.2. If a customer desires to be billed, a credit application must be presented,filled in thoroughly and returned to the General Manager at least two (2)weeks prior to arrival.3. Incomplete application or those credit applications not received within two(2) weeks of arrival will not be processed.4. Credit application for business of $5,000.00 must be signed by an officialof the company requesting direct billing.5. Minimum of three (3) references to be verified.6. When possible a copy of the company credit card to guarantee the directbilling.


PURCHASE ORDER SYSTEM Page 1 of 2

PURPOSE:1. To control expenditures at point of purchase.2. To provide confirmation of items as to quantity, price, specification, size, etc.3. To provide an audit trail for invoice/statement from supplies.4. To provide a basis for accrual accounting. By doing so, the profit and lossstatement more accurately reflects the operating results for that period.

SCOPE:Includes any and all goods/services purchased from outside suppliers, whichtotals $25.00 or more, except travel expenses.

LEVEL OF AUTHORIZATION/APPROVAL1. Up to $25.00 Department Head No Purchase Order Required

2. $25.00-$500.00 General Manager Department Head submitsP.O. to Manager for approval to purchase and is assigned P.O. number.

3. Over $500 Corporate Office GM submits P.O. toCorporate Office for approval to purchase (includes normal operating supplies). Submiton Friday.


PURCHASE ORDER Page 2 of 2

HOW TO COMPLETE A PURCHASE ORDER:

Most purchases are made through the internet and therefore actual PurchaseOrder Forms are no longer used. However, prior to placing an order a copy ofthe order form should be prepared and items needing to be replenished markedoff.1. On the order form fill in quantity ordered (each,dozen,case,etc)2. Fill in the extended item price3. Submit to the GM for approval and P.O. number4. Over $500, GM to submit to Corporate office for approval5. Once approved submit order and retain order form to verify upon delivery

VERIFYING DELIVERY:

All deliveries will be verified prior to the driver leaving the premise by using theoriginal order form against the packing slip. Note any back orders listed onpacking slip and refuse in additional items that have been shipped. It is mostimportant that the driver signs off on any refused item. In some case, the drivermay not be permitted to take back unordered items. If this is the situation, thevendor representative will be contacted immediately to retrieve the item and signoff on the removal of the item from the property.The packing slip and original order form is then turned into the General Managerto verify against the invoice/statement.


CHARGEBACKS Page 1 of 1

There are two (2) types of Chargeback’s. The customer direct dispute and thecredit card chargeback.

Customer Direct Dispute – is when the customer calls the hotel direct to disputea charge. If a cardholder contacts you directly before contacting his/her bankand has a charge dispute, it is up to the GM or AGM to research the dispute andcontact the customer with the support. If the dispute is valid and a credit needsto be issued, confirm with the cardholder and follow-up with a call or e-mailstating the amount credited and the date the credit was issued.Credit Card Chargeback – a chargeback is a transaction that a card issuerreturns to a merchant bank as a financial liability and which in turn a merchantbank may return to a merchant. In essence, it reverses a sale transaction.Chargeback’s are not always a result of what a merchant did or did not do.Errors are also made by merchant banks, card issuers and cardholders.Any chargeback needs to be thoroughly investigated and disputed within 24 hours of receipt.

NOTE: Whether the dispute is generated directly by the guest or through thecardholders bank all instances should be handled and responded to within 24hours. Part of our guaranteed payment with our processor is No Show Billings.No Show billings need to be completed daily.

Thorough training of your associates will minimize a chargeback. Listed beloware items that can be done to eliminate chargeback’s:

1. Always swipe the credit card through the magnetic reader.2. Manually imprint credit cards on the guest registration card.3. Clean magnetic readers several times a year.4. Keep food and beverage away from computers and readers.5. Hold the credit card through the entire transaction process (allows time forthe associate to check features & security elements).6. Always compare signature before returning card to the cardholder.7. Never provide cash advances. Direct guest to a local bank.8. Any card that is presented unsigned, verify through government issuedidentification (state issued I.D., drivers license, passport).9. Read, train and distribute updates to associates provided by yourprocessor.


CHECK REGISTER/LOG Page 1 of 2

PURPOSE:To provide a complete record of all incoming checks.The Mail/Check Register should be maintained by the person opening the maileach day. This register/log should contain the following information:1. Amount of check.2. Name of maker.3. Folio or A/R account to which the check is applied.4. Date check was received.5. Signature of General Manager attesting to the register being checked toinsure all items have been properly posted.6. Log book needs to be maintained with daily register along with copies of all checks received.

PROCEDURE:1. In order to maintain proper control, it is essential that the General Manageropens all mail sent to the hotel, without exception.2. All checks, money orders, etc, must be stamped “For Deposit Only”. Allchecks received will be listed in the Mail/Check Register as follows;a. City Ledgerb. Credit Card Ledgerc. Advance Paymentd. Commission Checkse. Petty Cash3. The following columns of the Mail/Check register should be completedbefore posting to the account.a. Check Numberb. Amountc. Dated. Name of makere. Account Name4. The AGM or GM will post the payments and drop in the safe as a separatedeposit.5. The completed check register needs to be maintained in a binder with copies of each check.


CHECK REGISTER/LOG Page 2 of 2

REQUIRED DISTRIBUTION OF MAIL/CHECK REGISTER:1. Copy 1 – should be included as part of the front desk paperwork.2. Copy 2 - should remain in a chronological permanent file at the hotel.


SALVAGE SALES – FIXED ASSETS Page 1 of 1

PURPOSE:

To establish procedures to be followed in accounting for fixed asset salvagesales.1. This applies to the sale of used, obsolete and/or surplus fixed assets byInns.

2. Where feasible, competitive bids are to be obtained when disposing offixed assets.

3. The sale of fixed assets as mentioned above should be recorded on thehotel’s books as follows:

a. Fully Depreciated Assets – Proceeds from the salvage sale of fullydepreciated fixed asserts should be booked as a credit to accountSalvage Sales Income in your “Other Income Department”.b. Assets not fully depreciated – proceeds from the salvage sale offixed assets which are not fully depreciated should be record on thebooks of your Inns as a credit to the fixed asset account chargedfor the cost of the asset at the time of purchase. When computingdepreciation on “additions to the fixed assets account:, theproceeds from the salvage sale should be deducted from theamount of “addition” to arrive at a net amount to depreciate.4. All salvage sales require a sign off from the HPH VP of Accounting.


A/P TRANSMITTALS Page 1 of 1

1. Each time accounts payable invoices are prepared for processing toaccounting, a transmittal sheet should be prepared for all invoices ( inaccordance to the HPH Systems Accounting Checklist): (attached below – procedures, Chart of Accounts and Expense Dictionary)

a. Accounts Payableb. Debit Card Reportc. Petty Cashd. Linen Inventorye. ATM Reportf. Managers Check Registerg. F&B Inventory & Recaph. Breakfast Inventory

2. Transmittal Numbers – all accounts payable sheets should be numberedaccording to HPH Systems policy.

3. Transmittal Sheet – copies of each transmittal sheet should be maintainedat the property for General Ledger reconciliation. It is also necessary toattach invoices to the transmittal sheet.

4. Invoice Coding – all invoices to be coded prior to placing on the transmittalsheet to include vendor number and chart of accounts assignment. Placeaccounts in numerical order on the transmittal sheet.

5. Transmittal Sheet – should be submitted to HPH on a weekly basis dependant upon the day of week assigned to your property.


SYSTEM BACK UP Page 1 of 1

PURPOSE:

To enable your hotel to have the most current data available in case of acomputer hardware or software failure.

All PMS systems are backed up during or after the night audit. It is mandatory that the back up procedure is completed without fail each night.

General Managers will make weekly back ups of files on any additionalcomputers assigned to them.

NOTE: Consideration of off sight storage should be discussed with HPH VP Of Accounting.

SECTION II AREA S.O.P. 1ADMINISTRATION

GENERAL Page 1 of 1

PERSONNEL – A separate Human Resource Policy & Procedure Manual (Employee Handbook) must be issued to every associate at time of hire, with documented receipt placed in employee file. Please refer to it for any questions/formspertaining to personnel.

BUDGET – An annual operating budget will be prepared by propertymanagement and submitted to HPH Corporate Office prior to the beginning ofeach fiscal year. Once approved, this budget is the financial guide for eachmonthly accounting period for all aspects of the operation.

FORECAST – 30 day forecasts are to be prepared at the property and submittedmonthly to the Regional Director of Operations.

WEEKLY FORECAST – Weekly forecast should be distributed to all DepartmentManagers for preparation of their departmental scheduling and ordering.

HP Hotels EMERGENCY CONTACT NUMBERSCorporate Officer’s Home Telephone Cell PhoneJoe Powers 205-879-7004 ext. 16 205-296-8564Kerry V. Ranson 205-879-7704 ext.24 205-965-5504Jeff Schneider 205-879-7004 ext. 10 205-356-8207

The above numbers are available to senior management in case of anemergency.

Each hotel should have at the Front Desk and/or Switchboard an updated list ofall Department Managers home and cellular telephone numbers (located underforms). This list should also be forwarded to the corporate office.In addition, associate telephone numbers should be available in eachdepartment.


DONATIONS Page 1 of 1

1. All charitable donations of less than $25.00 are left to the propertymanager’s discretion.

2. Charities – All HP Hotels properties will participate in fundraising efforts for different Charities

It is suggested that Department Heads/Associates “blood, sweat and tears” bepledged to community charities in place of cash donations. This further involvesproperty management in local community affairs, thereby building awareness inthe business community.


ASSOCIATE WORK SCHEDULES Page 1 of 1

1. SCHEDULES - All Department heads must turn in Work Schedules nolater than Wednesday of each week for approval before being posted forthe associates. The General Manager must approve and sign off on eachschedule. Schedules must be displayed in each department in aprominent and permanent location.

a. Schedules should be prepared based on weekly forecasts andapproved labor standard charts in accordance to sound businesspractice.

b. Schedules must be posted by Thursday afternoon/eveningpreceding the scheduled workweek.

c. Schedules should be prepared based on your workweek.

d. Any changes must be approved by the Department Head andacknowledged by the General Manager.

e. Schedules are official records and must be maintained for three (3)years. (see below for example schedules)


NATIONAL CONTRACTS Page 1 of 1

. NATIONAL CONTRACTS – The following companies provide us with national contract pricing and service.

a. Royal Cup Coffeeb. S& D Coffeec. ECOLABd. Guest Supplye. American Hotel Registerf. Coca Colag. LP Shanks – (Gift Shop Vendor)h. SYSCOi. Home Depotj. Office Depotk. First Responsel. NetChexm. Kone (Elevator Maintenance)n. Burco (Rack Cards)o. Sales Prop. Travel Click

**Preferred Vendor for all hotels.Other contracts may be signed and you will be notified in writing of such.All vendor information can be located on web-site.


LEASE AGREEMENTS/CONTRACTS Page 1 of 1

CONTRACTS & LEASE AGREEMENTS – Any and all commercial leaseagreements and contracts must be approved and signed off by an Officer of thecompany. This would include any and all contractual agreements.No authorization exists for legal or contractual obligations of any goods and/orservices without specific written approval.


ASSOCIATE APPRECIATION Page 1 of 1

1. ASSOCIATE of the QUARTER – Each hotel will have a designatedAssociate of the Quarter unless hotel brand specifies a different program.An Associate of the Quarter is nominated by his/her peers and receives$50.00 restaurant gift card and a coupon for one (1) paid day off to beused in the following quarter..2. ASSOCIATE GIFTS/PARTIES – The HP Hotels Corporate Office mustapprove any gifts and/or associate holiday parties.3. ASSOCIATE LUNCHES – From time to time a hotel may sponsor anAssociate Lunch on the property for the following reasons: motivation,improved or passing quality scores, communication of new standards orprocedures.4. ASSOCIATE BIRTHDAY/ASSOCIATE ANNIVERSARY DATE – Everyonelikes to be acknowledged. Why not send a birthday card/anniversary cardto the associate’s home address signed off by the department managers.5. HOSPITALIZED ASSOCIATE – Take the time to contact the associatewho is hospitalized to check on his/her welfare. Go the extra step andsend a card from the entire staff and/or a planter.6. HP Hotels INCENTIVE – Make sure the incentives arebeing paid out in a timely manner. Associate must be currently employedat payout.7. ASSOCIATE REFERRAL PROGRAM – Although friends andacquaintances referred for employment may not be some of our bestchoices make sure the ones that actually fit the job are offered and thosewho do not qualify the associate is still acknowledged for the referral.8. LONGEVITY REWARD – Bonus paid for years with the company. Timelydistribution is required. Associate must be currently employed at payout.


FORECAST Page 1 of 1

1. Weekly Forecast – A weekly forecast of room occupancy and sales mustbe prepared and distributed to all department heads for associatescheduling and supply ordering no later than Wednesday of each week.

2. Quarterly Revenue Forecast – Quarterly revenue and Expense Forecastupdates would be prepared and submitted as requested.

3. 30/60/90 Day Forecast – Occupancy and Average rate forecastprojections for 30/60/90 days in advance required to be submitted eachmonth.


PAYROLL PROCEDURES Page 1 of 1

1. Time Sheets – All salaried associates may be required to fill out weeklytime sheets and submit to the General Manager each week.

2. Paycheck Distribution – Paychecks may be distributed after 2:00PM onthe Friday following the close of the pay period.

3. Advances – Payroll advances are not permitted.

4. Associates must pick up their own paychecks. Should an associate beincapable of picking up his/her paycheck, a letter of release signed by theassociate is required.


UNIFORMS/NAME TAGS Page 1 of 1

1. Name Tags – All associates must wear an appropriate name tag while onduty that includes first name and any brand specific requirements.Department Heads, Supervisor, AGM and GM name tags should includefirst and last name and any brand specific requirements.

2. Uniforms – All associates must wear the approved brand uniform while onduty according to brand standards. If there is not a brand standard inplace regarding uniforms the following will apply:

A. Housekeeping Associate – hotel issued shirt or blouse, dark slacks(Dockers, Walmart, J.C. Penney), dark colored closed toe shoe andname tag.B. Maintenance Associate – hotel issued shirt, navy blue slacks, darkclosed toe shoe and name tag.C. Front Desk Associate - hotel issued collared long sleeve shirt orblouse, Khaki slacks (Dockers, Walmart, J.C. Penney), comfortableclosed toe shoes.NOTE: Grooming standards and guidelines must be followed. Blue Jeans,excessive make-up and jewelry are not acceptable.


PRE-EMPLOYMENT PROCEDURE Page 1 of 1

All candidates for any position will require an interview by the next level ofsupervision.

Example:The Housekeeping Supervisor and the AGM as the next level of supervisionwould interview all Room Attendants

The AGM and GM as the next level of supervision would interview all Front Desk,Auditors and Maintenance.

The F&B Manager and GM as the next level of supervision would interview allF&B positions.

All prospective associates will be required to pass pre-employment screening asa condition of employment.- Credit Check – cash handling positions- Background Check – managerial and cash handling positions- Reference Check – all team members


LOSS INCIDENT REPORT Page 1 of 1

Each hotel has been given an insurance manual. All incidents that could be aloss for the hotel, associate or guest should be documented on a loss incidentreport.

All information on an incident report should be of factual nature and referencingpolice reports, pictures, witnesses and witness statements, date and times, etc..

The individual completing the incident report should make no claims with regardto liability of the Hotel nor should any opinions be expressed.

A copy of the incident report is forwarded to the corporate office, maintained inthe property general files and the original forwarded to our insurance carrier.

Though it is always preferable to forward the Loss Incident report to theappropriate level/office requested, there will be certain loss incident reports youmay wish to note is being sent for “informational purpose only”.

All reports are available in the insurance manual. Please utilize these documents.

HP Hotels, Inc.Incident Report

Hotel Name_____________________ Date of Incident:________________Time of Incident: ______________________Reported By: _________________________Type of Incident

__ Trip and Fall __ 911 Call from Hotel__ Bomb Threat __ Carbon Monoxide Event/Gas Leak__ Death __ Drowning __ Fire __ Food Poisoning __ Hurricane __ Illness/Injury __ Phone System Failure __ Power Failure __ Robbery __ Suicide

__ Tornado __ Other

Description of Incident _________________________________________________________

______________________________________________________________________

______________________________________________________________________

If bodily Injury: (What medical aid was given by whom?), or If property damage, give value and how damaged.

_____________________________________________________________________

_____________________________________________________________________

Action Taken:_________________________________________________________

_____________________________________________________________________

Manager on Duty _____________________________________________________________

Employees Involved/Witnesses / Name of Guest with address and phone number.

______________________________________________________________________

HP HOTELS Notified? _____ Were Police Summoned? ______ Fire Department Summoned? ______

Fire Medics Summoned? ______ Emergency Procedure Checklist Attached? ______File in Incident Report File and Copy to HP HOTELS (205-879-2680) and Hotel Ins. Company.

Attach Copy of Police Report


COMP ROOM POLICY Page 1of 1

From time to time complimentary room accommodations may be approved by theGeneral Manager for the following reasons:a. Business Promotionsb. Travel Agent Fam Tripc. Convention Group Fam Tourd. Visiting GM within HP Hotels Groupe. Visiting corporate member within HP Hotels Groupf. Past Guest Issue (goodwill gesture)

All complimentary rooms will be put in as “Occupied” status and must be registered in the Property management system.

THESE REQUIREMENTS STILL APPLY IN DETERMINING ELEGIBLESTATUS.

It makes good business sense to avoid granting complimentary roomaccommodations when the Hotel is expected to run at or near capacity.While no policy currently outlines quotas on the number of complimentary roomaccommodations allowed per month, a good rule of thumb is no more than 1% ofthe available rooms per month. Numbers higher than 1% will attract attention.A monthly recap of complimentary rooms to be forwarded to HP Hotels CorporateOffice.


GIFTS/CONFLICTS Page 1 of 1

It is a policy of HP Hotels Group LLC to discourage the offering of gifts, excess discounts, gratuities,complimentary trips, meals, etc., from any purveyor or company engaged inconducting business with the Hotel.

Complimentary consumable food and beverage items (liquor, hams, turkey, giftbasket, etc.) and/or gifts offered during the Holiday Season should be utilized asdoor prizes during the annual associates Holiday party. It is the GeneralManager’s responsibility to discourage the use of vendors related or known to aparticular staff member that might present a conflict of interest or the perceptionof it.Violation of this policy could result in termination.


GUEST COMMENT/SURVEY Page 1 of 1

Guest Comment Card/Guest Survey - It is the policy of all properties to remainclose to the customer and recognize his/her needs and expectations as being thekey to our financial success. In that regard, each guest room will have a GuestComment Card (in accordance to brand standard).

All guest comment cards or surveys requiring or indicating a response will behandled immediately and appropriate action taken by the General Managerand/or Assistant General Manager to research and respond. In the case where arefund or financial compensation is expected/deemed appropriate, thatreimbursement will be provided to the guest as rapidly as possible.

Any comments or complaints generated through the brand Guest Assistanceprogram will be researched and responded to within brand guidelines.Any scores below the system average are unacceptable. All scores, goals andresults need to be communicated to all associates on a monthly basis at aminimum.

SECTION II AREA S.O.P. 15ADMINISTRATION HAZ COM POLICY

Page 1 of 1

All HP Hotels properties will participate and abide by the Hazard CommunicationPolicy (Haz Com Policy) set forth (under forms section).

The Hazard Communication Policy is based on a simple concept that associateshave both a need and right to know the hazards and identities of the chemicalsthey are exposed to when working. They also need to know what protectivemeasures are available to prevent adverse effects from occurring.Knowledge acquired under the Haz Com Policy will help employers provide safeworking environments for the associates. When associates have informationabout chemicals being used and steps can be taken to reduce exposure andestablish proper work practices. These efforts will help prevent the occurrence ofwork related illness and injury.

Compliance with this is not a “one-shot” deal. In order to have a successfulprogram, you must take responsibility for both the initial and ongoing activitiesthat have to be undertaken to comply with the rule. Therefore, all hotels willfollow the Hazard Communication program to include reinforcement andretraining on a regular basis or more frequently if necessary.


INSPECTION REPORTS Page 1 of 1

It is the General Manager’s responsibility to notify HP Hotels office and the hotels Director of Operations by telephone following any and all inspections by:

* Franchise representative* City or State Fire Department Officials* Health Department Representative* Insurance Company Representative* U.S. Department of Labor* Any and all State or Local Government Regulatory Inspections*Lending institutions*Hotel Investor

A copy of the inspection must be forwarded to the HPH Corporate Office.


MASTER KEYS Page 1 of 1

All hotels have on property information manuals regarding your particular locksystem. All information regarding, re-keying, duplicates, safety concerns, etc.,can be found in this manual.

It is the responsibility of the General Manager to provide training to the AGM, Maintenance Supervisor and/or key personnel on how to reprogram and read the lock.

All staff keycards, when made, have a tracking number assigned to the specificcard. All card numbers need to be recorded whenever made.

This section pertains to Master Keys, Sub-Masters, Floor Keys, Utility Keys,Section Keys and hard coded keys on property.

One (1) master key is issued to the General Manager and Assistant GeneralManager. The General Manager and Assistant Manager are the only one’spermitted to carry the Master off property including to their residence.

One (1) MOD key ring should be issued to the Manager on Duty and must be signed in and out.

All staff issued key cards must be signed out and in daily. These cards are to bekept in a locked box or drawer behind the front desk (office area). Staff issuedkeycards are not permitted to be taken off the premise.

Some hotels utilize hard keys for particular areas (store rooms, utility rooms,electrical panel rooms, etc.) and are normally issued to the maintenance person.These keys are required to be signed out and in daily.

At anytime a staff card is lost or misplaced or an associate whose employmenthas been terminated and the key card has not been surrendered a new cardmust be issued (not duplicated) due to safety and security concerns.


MEETINGS Page 1 of 2

The following is a list of required meetings to be held.

Departmental Meeting – To be conducted by Department Head/Supervisor andare required on a monthly basis to include an agenda and meeting minutes.Items to be discussed: safety/security concerns or issues, changes in procedures(brand, operational), business levels, associate training and any outstandingitems of the particular department. All meeting minutes must be archived in a binder.

Staff Meetings – To be conducted by the General Manager, held weekly andattended by Department Heads/Supervisor. An agenda of topics and meetingminutes are required. Items to be discussed: safety/security issues or concerns,changes in procedures (brand, operational), upcoming events, forecast,scheduling concerns, training, personnel issues, meetings and or cateringfunctions. All Department Heads/Supervisors are encouraged to contribute itemsfor the agenda and actively participate.

Revenue Management Meetings – To be conducted by the General Manager,held weekly and attended by Sales & AGM. Meeting minutes and action plansrequired. Items of concern would be upcoming forecast and rate strategies forup to 30 days out. Discussion of events in the area, impending functions/roomblocks, group pick-ups and release dates, peaks and valleys available for Sales,adding or removing minimum restriction, etc.

Safety Meeting – To be conducted by the designated “Safety Champion” and held monthly, attended by a representative from each department.. An agenda and meeting minutes required. Topics of concern would reflect safety/security issues that may cause aloss to the hotel, associate and/or guest. Walk through of the entire hotel toinclude individual departments, storerooms, utility, electrical rooms, pool, parkinglot, meeting facility, etc. Each meeting should include follow-up for any itemsrequiring action or patterns that are emerging. All safety meetings will alsoinclude information on the monthly fire drill report.

Fire Drills – Although it is not considered an actual meeting, fire drills are to beconducted monthly, involves the entire staff, is done on different shifts andshould be at least one “live” fire drill every six (6) months (suggested when thelife safety system is scheduled and guests notified in advance of the drill).Minutes for the Safety Meeting and the monthly fire drills are required to be faxedin to the corporate office by the 30th of each month.

SECTION II AREA SOP 18ADMINISTRATION

MEETINGS Page 2 of 2

Franchisor Meeting/Training – Any brand required meeting to be conducted by theGeneral Manager or Assistant General Manager i.e. People Notice, Lighthouse, Ultimate Service. etc.

SECTION II AREA S.O.P. 19ADMINISTRATION MEMBERSHIPS

Page 1 of 1

Each hotel is required to be a member in good standing with your local Chamber of Commerce. Each General Manager is required to be an active participating member in a local civic organization. We highly recommend taking a leadership role in chosen organization.

Any additional memberships require the approval of the corporate office.When possible try to utilize your local Chamber for networking, and businessneeds. Support you local Chamber by attending and/or sponsoring events tobenefit your local community.

SECTION II AREA S.O.P. 20ADMINISTRATION MOD PROGRAM

Page 1 of 1

Each hotel will have in place a Manager On Duty Program in accordance to thetimes required by your brand, normally 7am-11pm, seven (7) days a week andavailable by phone within 15 minutes at all other times. The Night Auditor must be trained on all MOD procedures as this position will assume all duties from 11pm to 7am.

There are two (2) MOD programs set up as smaller hotels may designate non salariedassociates such as Supervisors and/or Auditors to fulfill this requirement.

M.O.D. Position Requirements1. Must be a salaried manager 2. Must be of legal age (as established by state liquor consumption laws).3. Demonstrates good technique in handling guest inquiries and complaints.4. Capable of administering and abiding by house rules and policies,company regional and district operational rules and policies.5. Knowledge of hotel and system brand standards.6. Knowledge of pertinent “brand” marketing programs.7. Capable in delegating responsibility to shift leaders or assistants.8. Must be familiar with the functioning of each department.9. Capable of administering the responsibility of M.O.D. while maintainingtheir responsibility as a manager of a specific area.

As a salaried Manager on Duty, 30% of your time should be spent on the M.O.D.functions and the remaining 70% for you regular work duties and assignments.

Non-Salaried Position Requirements1. Must be currently employed in that department if possible.2. Must be recognized to perform in the job skills required for the position.3. Capable of working well with others and training of new associates in thearea.4. Demonstrate interest and potential in supervisory position.5. Demonstrate good techniques of handling guest inquiries and complaints.6. Demonstrates willingness to adhere to house and policy rules.7. Knowledge of applicable system standards, district policies and marketingprograms.8. Demonstrate support of in-house promotions and interdepartmentalcooperation.As a non-salaried Manager on Duty, the majority of their time will be spentcompleting duties of their regular job and minimal time on M.O.D. requirements.


ORGANIZATION CHART Page 1 of 1

A current Organization Chart listing each Department Manager by name must beposted on the main associate bulletin board at the hotel and updated when achange occurs.

A copy of the most current organizational chart must be on file in the HP HotelsCorporate Office. The General Manager is responsible for implementation of thispolicy.


PERFORMANCE APPRAISAL Page 1 of 1

The performance of each associate will be evaluated according to the followingschedule:

a. Department Managers/Supervisory/Associate Evaluation/Increases – All evaluations will occur on the anniversary hire date, monetary increases are only based upon successful performance and not based on length of service.

SECTION II AREA S.O.P. 23ADMINISTRATION P&L STATEMENT

Page 1 of 1

A monthly computerized Profit & Loss Statement is forwarded to the propertywithin 15 working days following the close of the previous accounting period. Thiscomputerized statement is in two (3) sections:

1. The Income Statement recaps revenues, payroll and variable expenses bydepartment and cost center.

2. General ledger itemizes and details revenues, payroll and expenditure bytransaction.

3. The Balance Sheet – accounting needs definition

It is the General Manager’s responsibility to reconcile the Income Statement tothe General Ledger and compare with the budget to determine and notify HP Hotelsof any accounting errors, miscoding of invoices, etc within 48 hours of receipt..

A HP Hotels Corporate PNL Reasoning Report Recap Sheet/Analysis is required to be completed 3 days after final PNL is produced..


PASSWORDS/COMBINATIONS Page 1 of 1

The General Manager is responsible for keeping and updating a master list ofany computer user names, passwords and telephone voicemail passwords.

This information will be kept confidential and will not be shared with otherassociates. (These passwords should be kept on the HP Transition sheet under the Password TAB and updated accordingly)

The “safe” combination for each hotel location will be written down and forwardedto the corporate office to be kept in the event of an emergency.

The “safe” combination will be shared with the AGM or similar position.

The safe combination will be changed following the departure of any individual with access to the combination. At any time, a change is made to the combination theupdated combination will be forwarded to the corporate office.

Corporate Office Procedure: Safe & Password List1. GM writes the safe combination and password list down and seals it in aplain envelope. This envelope is placed in another envelope and is mailedto HP Hotels Corporate Office.

2. Upon receipt of the envelope at the corporate office, the office manager willplace the envelope with the hotels secured file, opening only in anemergency.


VENDOR VERIFICATION Page 1 of 1

Whenever a vendor (soft drink, snack, pest control, deliveries, etc.) will bepresenting themselves in an associate or guest area, it is important that amember of management or an associate in a supervisory position escort thevendor around the building until the assignment is complete.

At no time, is a vendor permitted to be in associate or guest areas without anescort.


ILLEGAL ACTIVITY Page 1 of 3

Methamphetamines & the Hospitality Industry* Many people call methamphetamine the World’s Most Dangerous Drug”.Owners of hotels and motels know the dangers of Meth all too well.* It not only has long lasting, devastating effects on people who use meth, it canalso be devastating to others and create hazardous, toxic wastes on privateproperty.* Methamphetamine, also known as “meth”, “speed”, “crystal”, “crank” or “ice” isa powerful and highly addictive stimulant that affects the central nervous system.* Meth is a synthetic drug produced or sold as pills, capsules, or powder that canbe smoked, snorted, injected or swallowed.* Meth is accessible in many different forms and varies in color from white tobrown.* Most meth comes in a powder form resembling granulated crystals or in therock form known as “ice”.* Meth making operations have been uncovered in all 50 states. 100,000 methlabs have been seized since 1998 and it’s estimated that only 1 in 10 is everdiscovered.* Those statistics are shocking. No one is immune.* Meth labs have been found in suburban rural neighborhoods, state parks,hotels, motels and in automobiles traveling on highways.* By making small changes you can avoid big problems. At registration, beaware of individuals who…1. Pay with cash.2. Are local residents.3. Have no photo identification.4. Appear to be using drugs.5. Don’t want maid service.6. Request rooms next to stairwells & exits.7. Run the a/c 24/7.8. Loiter outside of a guest room (posing as lookouts).9. Odd hours of check-in and check-out.What You Can Do:* Security and associate training.* Require visitors to use main entrance.* Cancel lost keys immediately.* Perform daily room checks.* Walk hallways and building perimeter.* Talk with nearby properties and law enforcement about suspicious individuals.* Know signs of drug related behavior.

SECTION II AREA S.O.P. 26ADMINISTRATION ILLEGAL ACTIVITY

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* Be aware of chemical odors* Be aware of guests taking unusual items into their rooms, such as glasscontainers, cans and hotplates or burners.* Encourage all staff to be aware of what is in and around garbage bins anddumpster. Report suspicious items to the police.Signs of Use:*Scabs and soars on face and arms*Rotting teeth*Poor grooming*Extreme thinnessPersonality:*Anxious, Nervous*Incessant Talking*Moodiness, Irritability*Repetitive Behavior (picking at skin, pulling out hair)*Aggressive, ViolentIf you discover or suspect a drug lab:* Do not touch anything.* Leave the area immediately.* Call local law enforcement.* Contact the fired department or local Haz Mat Team.* If a lab is confirmed have clean up done by trained professionals.Here are some things to look for in identifying a meth lab:* Unusual strong odors (like cat urine, ether, ammonia, acetone, or otherchemicals).* Rooms with windows blacked out.* Guest who pay with cash. Most drug dealers trade exclusively in cash.* Lots of traffic – people coming and going at unusual times. There may be littletraffic during the day, but at night the activity increases dramatically.* Excessive trash including large amounts of items such as: antifreezecontainers, lantern fuel cans, red chemically stained coffee filters, drain cleanerand duct tape.* Unusual amounts of clear glass containers being brought into the room.


ILLEGAL ACTIVITY Page 3 of 3

* Persons exiting the structure to smoke.* Resistance to entry for cleaning service.

Long Term Effects:Meth can cause long term health effects including cancer, brain damage, birthdefects and miscarriages. It can also cause health problems not just for usersbut for anyone exposed to the chemicals.

Labs are frequently abandoned and the potentially explosive and very toxicchemicals are left behind. Sometimes chemicals are dumped along theroadsides or in wooded areas. Don’t take it upon yourself to inspect a possiblemeth lab. Call the Police as this can be a very dangerous situation in more waysthan one.

Summary:Remember, your guest’s safety is your responsibility and you need to be awareof conditions that may jeopardize their health, your health and the health ofeveryone on the property.It’s vital that you and your associates remain constantly aware of suspiciousactivity on your property and report them to Supervisors immediately so properaction can be taken.


EMERGENCY PROCEDURES Page 1of 1

All hotels are required to have an emergency situation manual that covers thefollowing:

1. Structural Collapse2. Bomb Threat3. Suicide4. Robbery5. Severe Weather6. Hurricane (guest release under forms)7. Fire

In addition to having the above manual, all associates are required to be trainedin these possible situations. Manuals need to be reviewed yearly and associatestrained /retrained each year and a record kept of the training.

There should be a manuals in Red Binders located at the front desk.

SECTION II AREA S.O.P. 28

AMINISTRATION GENERAL MANAGER CHECKLIST

Page 1 of 1

The following checklist has been created to assist you in some of your duties:

DAILY- Prepare and/or review Income Journal- Submit to M3 (Innquire) by 9am daily- Review GM Audit Reports- Verify credit cards for outlets and hotel have processed- Review Pending report from M3-ensure all invoices have been received at Corp office.- Review/approve all adjustments/allowances and paid outs- Review Future Rooms Sold, rate variance report and update forecast- Review off market rooms- Conduct property walk, inspect 5 rooms a day – greet and motivate staff- Bank Cash Deposits – to made daily (no exception and faxed to property DO.- Review departmental payroll (punch edits) to ensure adherence to staffing guidelines.- Review emails and respond as necessary to WebGuru/Guest Assistancewithin brand guidelines

WEEKLY- Conduct Staff meeting with Key Managers, to include group resumes and BEO’s- Conduct yield/revenue meeting: Holidex, Opera,HIRO,Lodgestat, OnQ,OnQRev Mgt and any other property specific reports- Review weekly payroll reports – Compare to DLR (daily labor report) In Forms- Review Easy View Report/Salt- Review A/R/ ledger and aging – Contact clients as needed- Complete Room Inspections- Review & approve purchase orders- Review F&B inventories on the 15th and EOM with F&B Manager- Review STAR Report- Review weekly Sales reports

MONTHLY- Attend monthly departmental meetings – review & approve agenda- Complete all brand required reporting.- Compete all month end reports and email their corporate controller by 5th day of new month.- Review P&L – note variances to budget, correct any miscoding- Review training requirements – review all certifications being met- Review STAR Report- Conduct Quality Evaluation walk through – note action items- Review monthly Guest View/Salt scores – create action plans with staff- Review brand and Life/Safety requirements- Conduct Safety Meeting – submit to RDO and Corporate Office Manager- Conduct Monthly Fire Drill – Submit minutes to RDO and Corporate Office Manager


OUT OF SERVICE ROOMS Page 1 of 1

The purpose of this section is to limit the number of “out of service” rooms.

Before placing rooms in out of service status it is crucial that the reason beinvestigated before approving the status. This will control the number ofunnecessary reasons and allow you to follow up on the progress or room(s)being placed in this status.

It is highly suggested that a member of management (HousekeepingSupervisor/AGM/GM) check all rooms listed as out of service to confirm statusand to confirm the room(s) is not being used on a daily basis.

During peak season, you should avoid over night or multiple night(s) in the out of order status.

Out of service rooms should be placed to “in service” status within reasonabletime (same day) when possible.

If it is necessary to have a room out of service for single or multiple nights,approval is required by the AGM/GM. This information should be reported to theCorporate Office and entered in the front desk log book.


ENVIRONMENTAL COMMITMENT Page 1 of 1

All hotels will participate in a state approved environmental program aimed atprotecting and conserving our natural resources.

Most environmental programs created for the lodging industry consist of recyclingprojects, reducing and re-using.

For more information on protecting our Natural Resources and becoming an Eco-Friendly hotel contact HPH Corporate Office.


TRAVEL ALLOWANCES Page 1 of 1

1. When traveling to required brand conventions, meetings, training classes, the following allowances are standards to be followed for meal allowances, if and only if meals are not provided during events:

Breakfast: Whenever possible lodging should be at breakfast included properties. When not available, limit is $10 per day.

Lunch: $15

Dinner: $20

2. When traveling to required brand conventions, meeting, training classes, etc. the following procedure are to be followed for sleeping rooms:

If an HP Hotel managed property is located in the area, property GM must be contacted to see if employee rate is available

If employee rate cannot be granted. GM must turn HP Check Request form with detail hotel rate amount into the HP Accounting department and RDO for check release. This must be done at least 14 days in advance of meeting.


MILEAGE REIMBURSEMENT Page 1 of 1

Use HP Hotels Mileage Reimbursement form found under “Forms Tab”

Mileage will be reimbursed at the current governmental per-diem with a maximum cap at .50cents per gallon.

SECTION III AREA S.O.P. 1F&B

SPECIAL PROMOTIONS Page 1 of 1

Each hotel will follow a special promotion calendar as developed with VP and Senior Director of Sales & Marketing Director consisting of a minimum of one theme promotion per month (which includes Open Houses) and should be specified in the annual Sales and Marketing Plan.

Cost/Benefit Recap vs. original forecast of monthly promotion is due to HP Hotels withmonth-end Food & Beverage Inventory Recap. (Pertains to full service hotels)


MENUS Page 1 of 1

All menu items and menu price changes must be approved in writing by theGeneral Manager of the hotel and should include:

1. Item cost-of-sales2. Specifications3. Cover History4. Theoretical sales potential cost5. Menu abstract history6. Menu spec cards7. Presentation pictures.


RESTAURANT OPERATIONS Page 1 of 1

Table Tents – Table tents promoting lounge, restaurant and special promotionsmust be on all restaurant and lounge tables and in each guest room per brand specifications.

Comment Cards – A guest comment Card will be provided on each restaurantTable per brand specifications..


LOUNGE ENTERTAINMENT Page 1 of 1

1. All entertainment contracts may be approved and signed by the propertyGeneral Manager in accordance with monthly entertainment budget and must have RDO approval.

2. All entertainment contracts will include specific playing time and breaktime.

3. A Federal Identification number or Social Security number is needed on allentertainment contracts for I.R.S. reporting.

5. Hotel contract should specify any ASCAP, BMI and/or SESAC Costs arenot the responsibility of the hotel.


INVENTORIES Page 1 of 1

1. Liquor – An inventory of liquor shall be prepared at mid-month, as well asat the end of each month. (can be found on HP website)

2. Food – An inventory of food shall be prepared at mid-month as well as atthe end of each. (can be found on HP website)

3. China, Linen, Glass and Silver – An inventory of china, restaurant linen,glass and silver shall be prepared on a quarterly basis, reconciled toestablished par stock to determine needed replacements.

4. Month End Food & Beverage - All mid-month and month-end food andbeverage inventories shall be taken and submitted on the monthly Food &Beverage Inventory Control Form.

5. Inventory Levels – Food inventories should be kept in the range of fifteenpercent (15%) to eighteen percent (18%) of total food revenues.Beverage inventories should be kept in the range of eighteen percent(18%) to twenty percent (20%) of total beverage revenues.

6. Miscellaneous –a. All inventories must be reviewed and approved by the General Manager

b. Inventories should involve personnel from outside the F&B Department to establish aseparation of duty. (2 people required to do inventory – 1 calling, 1 writing)

c. All prices should be updated prior to conducting inventory.

d. Bulk dollar values for “Food in Process” are not acceptable.


BEVERAGE POLICY STATEMENT Page 1 of 1

1. All food and beverage associates will review and complete the HP HotelsBeverage Policy Statement prior to reporting for duty.

2. All food and beverage associates will receive a copy of the AH&MABeverage Policy Manual prior to reporting for duty.

3. All food and beverage associates will view the video tape “Serving AlcoholWith Care” prior to reporting for duty and each quarter thereafter. Writtendocumentation of this re-training and re-emphasis of HP Hotels policystatement will be placed in associates personnel file.

4. All the above procedures should be reinforced and reviewed quarterly as aminimum requirement.

5. It is property management’s responsibility to strictly adhere to all State andLocal laws and beverage control regulations.

6. All food and beverage associates will comply with TEFRA regulationsregarding the reporting of tips.


BANQUET OPERATIONS Page 1 of 1

Banquet Service Charge – The standard service charge in the BanquetDepartment shall be twenty percent (20%) of all Food and Beverage service andcan be adjusted with approval during the budget process.


BEVERAGE PRICES/HAPPY HOUR Page 1 of 1

1. Changes in beverage pricing must be approved by the General Managerand should include the following categories:

2. It is suggested that all Happy Hours/Hungry Hours include a variety ofavailable food, complimentary, or at a price to cover cost of providing thisHappy Hour food. Discountinuing of a drink price is discouraged.


SECURITY F&B AREAS Page 1 of 1

It is the General Manager’s responsibility to make certain that the Food &Beverage Department Manager has in-place at all times adequate security andinternal control procedures as identified in the Accounting Procedures or Self-Audit Checklist so as to provide for the security of assets.


FOOD STORAGE Page 1 of 2

Food storage and handling apply to select service hotels as well.In an effort to maintain the highest quality food product possible, food storageareas will be maintained according to the following:

1. Walk-In/Reach-In RefrigeratorsA. All food covered or sealed.B. Shelves neatly arranged and labeled.C. All thawed raw food dated and arranged in one central area.D. All cooked food stored in a central area.E. Sheet pans, clear plastic storage bins, etc. utilized to store fooditems removing them from their delivery containers.F. Food should be rotated on a first-in/first-out basis to avoid spoilage.G. Cooked food items should be dated so as to easily determine theirpresent quality.

2. Dry Goods StoreroomA. All goods should be labeled with the price per item as/whenreceived.B. Stock should be rotated on a first-in/first-out basis.C. All dry goods should be on shelves and not on flooring.D. Rolling racks should be utilized whenever possible to aid therotation cycle.E. All open food items should be transferred to an appropriatecontainer, sealed and stored as necessary.F. Bulk quantities of flour, meals, sugar, etc. should be placed insealable containers and labeled.


FOOD STORAGE Page 2 of 2

3. FreezersA. All items should be date labeled to aid in determining productquality.B. Packaging (i.e.Cryovac) should not be removed until food itementers into the preparation cycle.C. Prepared food items should not re-enter the freezer unless properlywrapped and a purpose for their use in the near future isdetermined.


ADVANCE DEPOSIT POLICY Page 1 of 1

When the booking of a group becomes tentative or definite and the contract iscompleted, this should include the deposit requirement necessary to hold thespace and assure the facility that has been committed.

Should deposit request not be honored by the perspective customer, the possibility of not being afforded the space required should be clearly conveyed. The details of the cancellation penalties, if any, would also be explained.

This requirement is not meant as a deterrent to booking business, but as ameasure to safeguard the assets of the company. When presented properly andfirmly, requests for advance funds should bring affirmative responses.

NOTES:1.) Do not offer direct billing to the client, but do discuss formsof payment.

2.) If a customer desires to be billed, a credit application mustbe presented to him.

3.) All credit applications must be filled out thoroughly andreturned to the hotel General Manager at least two weeksprior to arrival.

4.) Incomplete application or those credit applications notreceived within two weeks of arrival will not be processed.

5.) Credit applications must be signed by an official of the company requesting directbilling.


PAYMENT OF SERVICE CHARGES TO EMPLOYEES Page 1 of 1

1. Banquet or Baggage Service Charges are set percentages of a group bill tobe paid to the associate for service performed (food preparation/service,baggage handling).

2. All Banquet and Baggage Service Charges must be paid through the payrollsystem.

3. To ensure that all service charges are entered on the Payroll Transmittal, itis suggested that the attached Service Charge Report (Form #52) is used.

4. This report is used to distribute the amounts of the service charge due to allassociates. It ensures that each associate received his/her portion of theservice charge through the payroll system.

5. The report should be maintained in the General Manager’s office/. Theapplicable department heads (F&B Director & AGM) should update thereport each time a service charge is earned by one or more of theirassociates.

6. Accounting for Service Charge, Banquet, Baggage Charges are posted onthe miscellaneous key (if no preset key is available) on the front desk.

7. Before the completion of the Payroll Transmittals, the GM or AGM shouldverify that the service charges recorded on the Service Charge Report are equalto the Service Charge posted on the Property Management System.


ACCT. FOR IN-HOUSE OUTLET CHARGES Page 1 of 2

The following procedures will outline the policies and procedures governing theconsumption of Food & Beverage products for Administration and General (A&G)or Advertising and Promotion purposes (A&P).

Only certain management personnel have been authorized to utilize Food &Beverage outlets and sign their tickets to these accounts. These individualsshould be authorized by the General Manager through a memorandum. Theauthorized list must be current and maintained on the property at all times. Alcohol is prohibited at all times, with the exception of approved sponsored events.

PROCEDURE:1. Outlet cashier/bartenders should require the server to obtain the individualssignature on the guest check.

2. Authorized management personnel are required to specify on the guestcheck who was entertained and the name of the firm and prospectivebusiness if available. The words “A/G” or “A/P” must be indicated on allbusiness promotion checks.

3. Night Auditor on a daily basis will breakdown the charges on the A/P andA/G folios into details of consumption by outlet on a spreadsheet(breakdown of food, liquor, wine, beer, charge tips, etc. and the week’s totalshould be in balance with the individual folios that are adjusted weekly).These detailed spreadsheets should be summarized monthly for the closingjournal entry.

4. Month-End Accounting for A/P and A/G - A journal entry must be madeeach month by the accountants to adjust the revenue generated by the in housecharges and grant credits to the Food & Beverage Departments forthe cost of goods consumed.

5. No food should ever be prepared from the kitchen without a POS ticket.


ACCOUNTING FOR IN-HOUSE OUTLET CHARGES Page 2 of 2

6. The Food & Beverage credits granted will be based on actual year-to-datecosts.


SERVSAFE CERTIFICATION Page 1 of 1

ServSafe is a state approved program and requires that each food establishmenthave at a minimum one Food Manager Certified. ServSafe certification trainingis required for all hotels as follows:

FULL SERVICE:1. F&B Director/Manger is required to complete and pass the ServSafe FoodManager Certification.

2. All food handlers (prep cook, sous chef, chef, servers, etc.) are required tocomplete the Food Handlers Certification. This is administered by theServSafe Food Manager on property.

SELECT SERVICE:1. The GM is required to complete and pass the ServSafe Food ManagerCertification.

2. All food handlers (breakfast host/hostess) are required to complete andpass the Food Handlers Certification.

All certifications are required to be displayed in the kitchen/pantry, one in theindividuals file and one copy to the individual.

The ServSafe Food Manager Certification is valid for 5 years and must be retakenprior to expiration.

The ServSafe Food Handlers Certification is valid for 3 years and must be retakenupon expiration.

SECTION IV AREA S.O.P. 1FRONT DESK

V.I.P. PROCEDURES Page 1 of 1

Each hotel will be responsible for participating in special V.I.P. Procedures for thefollowing types of guests:

VIP Guest – (specialty guest). This VIP Package would consist of: M.O.D. roominspection, upgraded room accommodations, welcome gift and letter from theGeneral Manager, upgraded name brand amenities (other than the brandedamenities).

Guest of the Day – (preferably one night stay enrolled in brand reward club).This package would consist of: M.O.D. room inspection, upgraded roomaccommodations, welcome letter from the General Manager (under forms) and asnack.

Please feel free to customize the welcome gift and/or snack if you personallyknow the client’s likes and dislikes.

Welcome gift suggestions: branded promotional items, local items of your area,complimentary in-room movie, local restaurant gift card, gas card.

Snack suggestions: premium bottled water, soda, sweet items, and salty items.

Hotel Letter Head

Welcome!

Dear Mr. or Mrs. _______________,

Welcome to (hotel name). We have been waiting your arrival. It is our goal to make your stay as close to "home" as possible.

Our staff is committed to exceeding your expectations so that you will be glad you chose us. We will do all that we can to make your stay as comfortable and relaxing as possible so that you will think of (hotel name) the next time you or someone you know needs hotel accommodations.

Please let us know how we can make you more comfortable. Thank you for being our guest and we look so forward to your next visit.

Sincerely,

Hotel Contact Name

(include business card)


ADA/MOBILITY GUEST Page 1 of 1

A list of physically challenged guest should be kept at the front desk for thosewho may need additional assistance (crutches, elderly, physically or mentallychallenged, sight and /or hearing impaired, etc) during an emergency.

The Front Desk log book has a special section and is required to be used. Somebrands specify use of an individual form (located under forms). As usual brandstandard applies.


INNKEEPER SHELTER /CHECK IN AGE Page 1 of 1

The legal age to check into a hotel is 18. This is the age in which a legal bindingcontract can be signed.

You need to be aware of the “Innkeeper Shelter” provision which states“necessity” is required in order to rent to a minor.

Necessity would be a minor traveling and his/her car breaks down. In this case, you could rent to a minor and/or provide a safe place such as the lobby.

If you choose to rent to a person who has not yet reached the age of majority youcan require a “permissions statement” from a parent or legally responsible adultacknowledging acceptance of responsibility for the debts incurred by the guest.


NO SHOW POLICY Page 1 of 1

All HP Hotels properties will participate in the billing of all guaranteed no shows. Thefollowing procedures will apply:

1. After 6pm but before 7pm, all arriving guest reservations will be checked forany duplication or possibility of being in-house.

2. Any duplicate or in-house record will be investigated.

3. The night auditor, before starting the night audit will print all due inreservations and corresponding reservation record. Prior to the audit the auditor will post the no show charge, bill the credit card,attach the back up and place the record in the day’s paperwork.

4. Should the guest arrive on the wrong day considerations will be taken andthe no-show charge reversed.

5. Any disputes regarding no-show billing will be directed to the GM and willbe handled on a case by case basis.

Note: No Show revenue, although listed in the miscellaneous category of theIncome Journal is considered room revenue in the PMS system and for taxpurposes. Please remember to include this in your monthly room revenue whenpreparing taxes.

SECTION IV AREA S.O.P. 5FRON DESK

AREA PET POLICY Page 1 of 1

It is the policy of all HP Hotels to accept small pets 25 pounds or less (If the hotel accepts Pets (those hotels with a NO PET POLICY are exactly that).

*********Any Guest that requires the assistance of a Service Animal Must be allowed in the hotel at any time**********

If it is at all possible, pet rooms should be contained to a section of rooms for ease inhandling and proper cleaning. A one time pet fee of $35, non-refundable isrequired unless pet fees are prohibited by the brand.

All guests who check in with pets should be presented with a pet letter (underforms) and explained where the walk area is.

Every hotel must have listings of kennel’s or similar pet boarding locations and veterinarians available for the guest if the hotel does not accept pets.


SAFETY DEPOSIT BOXES Page 1 of 1

It is the General Managers responsibility to make certain that guest safetydeposit boxes are available and that the procedure in-place conforms to theState regulations concerning guest safety deposit boxes.

The following procedure is suggested:

An appropriate State approved form to be used. State approved form to be filedwith the registration card.

Only the guest registered to the box is permitted into the safety deposit box and asignature and date is required on the form each time entry is made. This meansif there are any additional user’s the registered guest must be present in order toadd any additional names and signatures.

There are not any duplicate keys for safety deposit boxes. The State formspecifies this, the charge for a lost key and the charge for the locksmith will bebilled to the guest.

When a safety deposit box is closed out (returned to the desk), it is imperativethat the guest sign the line that says he/she removed the contents and the date.

All desk associates should receive training in the visual presentation proceduresfor a guest safety deposit box so that a guest may have some degree of privacyin handling the safety deposit box, while maintaining visual contact with the hotelassociate.

A monthly reconciliation is required to be completed by the AGM/GM of all safetydeposit boxes.


CHECK CASHING/CASH ADVANCES Page 1 of 1

Cashing Personal Checks – Because much of our business is credit card relatedand for security purposes we keep a limited amount of cash on the property, thefollowing criteria will be policy in cashing personal checks:

1. Cashing of personal checks should be politely referred to the nearest bankor check cashing service.

2. Traveler’s checks may be cashed for hotel guests up to $50 per day, $100per week maximum during total of guest stay. Guest must sign and fill out the travelers check completely and traveler’s check must be in U.S. Currency.

3. No associate checks should be cashed at any time (payroll or personal).

4. Some brands may require cashing of personal checks for reward staymembers. If this is the case, brand standard will prevail.

Credit Card Cash Advances – We are unable to provide cash advances forcredit cards.

1. Refer guest to nearest bank or ATM service.

2. Includes guest and/or associates.

In addition, there are some companies that provide generic vouchers for roomcosts, unless you have a contract with a particular company HP Hotels doesnot participate in these types of programs.


PBX Page 1 of 1

Incoming calls should be answered immediately or within three (3) rings,maximum. Some brands have standards on telephone etiquette. If this is thecase brand standard will prevail.

Answering:

1. All PBX Operators should use the following remarks when answering theswitchboard:“ Good Morning (afternoon,evening), Thank you for choosing the (Hotel name), (your name) speaking, how may I direct your call?”

Closing:1. “Thank you, have a nice day!” “My Pleasure to connectyou.”

In House Calls:

1. “Good Morning (afternoon, evening), Guest Name”(i.e. Mr. Smith) This is “Operator Name’ (Samantha) at the front desk, how may I assist you?

Notes: When connecting incoming calls to guest rooms, transfer to a guest room can only be completed if the incoming caller can verify the last name of the guest. The room number alone is not sufficient for security purposes..

Room numbers must never be disclosed over the phone, in person or during thecheck-in process.

Room numbers for wake-up calls should be verified by last name.

If wake-up calls are done manually the wake up call must include guest name,time and current temperature.


TELEPHONE/FAX ORDER Page 1 of 1

At times, there may be instances in where a company or individual needs to payfor a guest account but will not be able to personally come to the hotel to pre-payor swipe the credit card. Telephone or Fax Orders should only be accepted in“rare instances”.

In this case, it is best to fax a Credit Card Authorization Form (located underforms) to the payee to complete. The form must be completed in it’s entirety, signed, and must include a copy of their driver’s license and front/back of Credit Card.Once the fax is returned it would be in the bestinterest of the hotel to contact your authorization company to verify theinformation and address. The authorization company will give you a codenumber to write down on the faxed document. This additional step may benecessary to deter a possible chargeback under the heading of “fraud”.


GROUP RATES Page 1 of 1

Group sales booking requests are to be connected to the Sales Department andat smaller hotels without a designated Sales Department to the GeneralManager.

Front Desk associates should never be quoting group rates or meetingroom rental information.

In order to qualify for group rates ten (10) or more rooms are required per night.


PUBLISHED ROOM RATES Page 1 of 1

During the budgeting process each year, published room rates (rack rates/BARrates) and dates of implementation will be approved. Any deviations from theseapproved rate or dates of implementation needs to be presented in writing to thecorporate office.

Only approved room rates are offered to guests. The only time you deviate is ifthe guest belongs to a marketing program or package.

Any TPI participation must be done according to brand and website guarantee.

In addition, a room rate exception report/rate override report needs to bechecked daily for discrepancies. Any discrepancies that appear needinvestigated immediately. Associates who are providing lower rates withoutapproval need to be counseled, written up and terminated for repeated offenses.Altering rates, especially on cash accounts may possibly be associate theft.


GUEST MAIL/MESSAGES/FAXES Page 1 of 1

It is the policy of all HP Hotels to recognize the legal responsibility requiredas an agent for guest mail, messages, and faxes. In agreement to this responsibility, theAGM/GM will periodically review the mail, message, and fax procedures currently inplace making sure that the procedures provide for adequate and timely guestnotification.

If the hotel receives mail/messages for guest’s not currently in house, futurereservation lists should be checked, an additional note added to the arrivalrecord and noted in the log book for the day of arrival.

Any fax or mail that is not picked up by the end of the day should be delivered to the guest room every evening.


REGISTRATION CARDS Page 1 of 1

The registration card is a legal document contractual in nature. All hotels arerequired to have complete information to include:

1. Name of registered guests and all adult occupants.2. Number of guests (adult & children).3. Complete mailing address (company or home).4. Car information to include make, model and tag number.5. Company affiliation (when on company business).6. Credit card magnetically captured and imprinted on registration card.7. Guest initials at rate and check out date (confirmation of both).8. Identification for cash paying guest (logged on registration card)9. Room deposit for cash paying guests (incidentals/damages).10. Initials of associate who completed the check in process.

A standard form of photo identification (valid license, I.D., passport) is required tobe shown for verification (brand standards may eliminate this step for thoseenrolled in the brand reward program).

AGM/GM is accountable for the accuracy of all registration cards. All shifts must perform a bucket check to ensure accuracy of registration cards.Any associate that has issues with the registration procedure will receive counseling and retraining to correct the issues at hand.

SECTION V AREA S.O.P. 1HOUSEKEEPING

AMENITY PROGRAM Page 1 of 1

All guest room supplies must conform to brand standard. The only deviationfrom this would be in support of the V.I.P. program amenity upgrade.

Additionally, the amenity container should be changed frequently unlessotherwise mandated by the brand.


MATTRESS ROTATION/PESTS Page 1 of 2

It is the responsibility of the Executive Housekeeper/Housekeeping Supervisor toset up with the help of the Maintenance Department a quarterly rotation on allguest room mattresses and keep records on file for brand inspections. Rotatingmattresses will help prolong the life of the bed set, remove contraband hidden byguest and allow us to do a thorough check for unwanted pests.Unwanted Pests – Bed Bugs

Bed bugs are resurfacing in the United States and have been found indormitories, rehab centers, hospitals, apartments, condominiums, cruise ships,used furniture, hotels and motels. Their flattened bodies allow them to fit into tinycrevices (mattresses, box springs, bed frames, headboards). Bed bugs do nothave nests like ants or bees, but tend to gather together. Bed bugs do nottransmit disease.Bed bugs are small, brownish, ¼ inch long with oval flattened bodies. Bed bugsare often mistaken for ticks or small roaches. The immature nymphs resemblethe adults but are smaller and lighter in color. Bed bugs do not fly. Bed bugs areknown as “hitchhikers” and can move quickly over floors, ceilings, walls and othersurfaces. The eggs are tiny, whitish and hard to detect (size of a dust spec).Bed bugs are very resilient. Nymphs can go for months without feeding andadults for 1 year. Bed bugs feed on humans and warm blooded animalsincluding pets.

Training housekeepers to make daily checks when cleaning rooms is the bestdefense available. The listed items below will aid housekeepers in making dailychecks for these pests while cleaning.1. Before stripping or remaking the bed, housekeepers need to check the bedlinen for small blood spots and/or small black fecal matter around the headof the bed.2. Look around the headboard for crawling bed bugs and/or black excrement.3. Check the folds and creases of the linen.4. NEVER yank the bedding off the bed. Slowly pull it up from the corners andfold it together.5. Report any pest activity to a supervisor.


MATTRESS ROTATION/PESTS Page 2 of 2

Quarterly Inspection – can be done in conjunction with the assigned mattressrotation. This is a more thorough inspection and may require two (2) people.

Using a flashlight will help detect eggs, as they are clear but have a sheen.

1. After the linen has been removed check the mattress seams (cords) from thehead of the bed to the foot of the bed.

2. Pull the mattress back from the head of the bed and check for bug activity,blood specs and/or fecal matter that may appear on the top of the bed skirt.

3. Remove the headboard from the wall and check for live crawling bugs, bloodspots, fecal matter, eggs on the headboard, wall and the wood that securesthe headboard.

4. Rotate the mattress and check the seams (cords) again from the head of thebed to the foot of the bed.

5. Keep thorough records of the quarterly check.

It is extremely important to train associates (housekeepers, maintenance) on howto look, where to look, what you are looking for and what to do if you suspect asighting. The process to rid a room of these pests is long and expensive.


LAUNDRY REQUIREMENTS Page 1 of 1

It is essential that all laundry departments have in place a capacity chart and/orscale to prevent laundry equipment (washer/dryer) from being overloaded.

All laundry rooms need to maintain a weight system as opposed to a sight system.

Another chart should be at the washer and dryer stations with the settingsrequired to utilize the correct chemical input and correct dryer setting for thedifferent types of linen handled.

Mixing different types of linens and/or using the incorrect settings will reduce thelife of the linens. Mixing of linens is prohibited.

Please contact your vendor if your hotel needs any charts.

Note: The person responsible for laundry of the hotel will also be responsible inassisting with maintenance of the equipment by cleaning washer lint traps oncedaily and dryer vents to be cleaned two (2) to three (3) times per day dependingon the amount of use.

SECTION V AREA S.O.P. 4HOUSEKEEPING LOST & FOUND

Page 1 of 1

Lost and found items will be the responsibility of the ExecutiveHousekeeper/Supervisor. All items Lost or Found will be turned in directly to thesupervisor to log.

1. When an item is found in a guest room or on the hotel property it will beturned in directly to the housekeeping supervisor.

2. The supervisor will log the item in the log book or PMS if system allows. To include; name of item, color and description, where it was found, date, time found and who found the item.

3. The supervisor will lock the item up. Any item of extreme value will beturned into the AGM/MOD/GM to secure in the hotel safe.When a guest contacts the hotel regarding a lost item it is the responsibility ofthe front desk associate to get the guest name, missing item information, datesof stay, room number occupied and a contact phone number. This informationwill be given directly to the housekeeping supervisor who will research andcontact the guest with the outcome within 24 hours (sooner when possible).

1. If the item is in our possession, the guest will need to make arrangementsfor the shipping of the item (UPS,FEDEX).

2. Housekeeping will box the item up.

3. The front desk will create a shipping label and hold the item behind the frontdesk for pick up.

4. If a guest is sending someone in to pick up the item or they are returning topick up the item, we will need to check the I.D. at pick up and have theperson sign for the item (no one is to be given an item without signing for it).

5. Items ready for shipping that has not been picked up within a week will needto be investigated by the desk by contacting the owner of the item.Items that are not recovered by the guest within 90 days can be given to theperson who turned in the item or donated to a local charity (homeless shelter,Salvation Army).


LINEN INVENTORY Page 1 of 1

Each hotel is responsible in conducting a linen inventory (located under forms)on a monthly basis and place orders according to the 2.5 Par level as required.

The linen inventory should be conducted by the Executive Housekeeper and theAGM/GM.

Note: Order as replacement is needed.


DEEP CLEAN SCHEDULE Page 1 of 1

A deep cleaning schedule to be maintained by the ExecutiveHousekeeper/Supervisor and according to your brand standards.

For those hotels who do not have a brand standard for deep cleaning, will needto have a procedure in place to ensure a deep cleaning is conducted on all guestrooms at a minimum of two (2) times per year.

Deep cleaning does include carpet and upholstery shampooing (guestrooms, banquet rooms, and public areas) and this service is provided by Carpet Cleaning Company.Records need to be kept on deep cleaned rooms.


Environmental ProgramPage 1 of 1

Follow the hotel branded environmental program when available.

SECTION VI AREA S.O.P. 1MAINTENANCE

PM PROGRAM/SAFETY PROGRAM Page 1 of 1

1. Each hotel will have a standard Guest Room Preventative Maintenanceprogram in place in accordance to the brand standard (form located in formssection).a. each room will be serviced once per quarterb. records to be retained for periodic inspection

2. Each hotel will have a Major Equipment Preventative Maintenance programin place to include: records according to warranty information and theenvironmental program. Major equipment includes: ice and vendingmachines, boilers, commercial air system, pantry and kitchen equipment, hotwater heaters, guest room units and commercial laundry equipment.

3. Each hotel must have a Safety Program in place. This program is left to thediscretion of the General Manager in concert with the approved Brands.


ELEVATOR TESTING Page 1 of 1

Documentation of monthly elevator(s) testing is required for each jurisdiction forlicense renewal.

Many of you have a contract with an elevator company and they are responsiblefor testing the elevator(s).

It is up to the Maintenance Department to participate in the elevator testing and make sure that logs are being kept up to date. Should your contract not include the monthly testing, have the elevator company train you on how to conduct the testing and record the outcome.


IN ROOM UNITS/PACKAGE UNITS Page 1 of 1

To maintain the life and efficiency of guest room HVAC/PTAC systems, thePreventative Maintenance Program should include monthly maintenance of theunits. It is up to the hotel on the number of rooms to be completed per day. Thefollowing is a small list of items of concern:

1. Check bearings and blower/fan

2. Check amps

3. Clean and/or change filter (can be assigned to housekeeping)

4. Clean coils

5. Check controls and thermostat

6. Check weather stripping

7. Add Freon if needed

8. Check grills/vents

9. Pulled out at a minimum once per year for a complete cleaningMaintenance of the Package Units/Commercial Units will improve the life of theequipment and support our commitment in the environmental program.

The following is a list of items of concern to be checked at a minimum two (2) timesper year:

1. Regular cleaning of coils2. Cleaning or replacing filters according to filter life (30,60,90 days)3. Check for mold, mildew, bacteria4. Clean drip pans5. Check for air obstructions.


HOUSEKEEPING EQUIPMENT PM Page 1 of 1

Upkeep of the commercial laundry equipment is of extreme importance to theoperation of the housekeeping department and the warranty and life of theequipment. Items to consider for the preventative maintenance program are:

Washer- Check condition of all belts- Check all bearings- Check all filters- Check all hoses- Check all seals- Check drain valve- Check controls- Check for appropriate water temperature- Perform all other maintenance as suggested by manufacturer

Dryer- Check belts and chains- Check drum and lint build up- If gas – check burner- If electric – check and clean coils- Check timer controls- Check filters (also done by housekeeping throughout the day)- Verify temperature controls are not set above 160 degrees- Perform all other maintenance as suggested by manufacturer

Vacuum-Check belts-Clean and check rollers-Check and tighten screws-Empty vacuum cleaner bag (weekly or ½ full mark) (can be assigned toHousekeeping/utility person)


UTILITY METER READING Page 1 of 1

The maintenance worker is responsible for the weekly reading of all utility meters(located under forms).

This information should be documented and reconciled to the month-end bill as provided by the utility company. The purpose of this policy is not an accounting function but more of an effort to catch mistakes, utility line leaks, miscalculation, misreading, wrong meter billings, etc. This is also an excellent method to improve awareness in energy conservation procedures.

A periodic review of lighting timers, photocells and signage is also required.


FIRE DRILLS Page 1 of 1

Monthly fire drills are required at all properties and documentation (in the formstab) provided to the corporate office and kept on file for brand life safety review.

1. In an effort to reasonably provide for the safety and security of our guests,associates and our physical assets it is a HP Hotels policy that a fire drill mustbe conducted once each month, preferably on alternating shifts to provideadequate training for associates.

2. A log indicating specific response times should be kept by the GeneralManager during each drill.

3. Date verification of the drill should be provided to the corporate officewhen safety minutes are sent.

4. At least once each year the local fire department should be asked toparticipate in the hotel fire drill procedures and it least one “live” drillshould be conducted per year (preferably during the life safety testing).

5. On a periodic basis at the time of the monthly fire drill, it is recommendedthat the Chief Engineer/Maintenance Supervisor provide associate trainingin the use of fire extinguishers.


SMOKE DETECTORS/EMERGENCY LIGHTING Page 1 of 1

It is the responsibility of the maintenance department to maintain all smokedetectors (located under forms tab), emergency lighting and exit signs in acurrent operating state at all times.

Smoke Detectors:

1. Smoke detectors should be tested every quarter by Maintenance duringroutine room inspections. Smoke detectors found deficient must berepaired immediately.

2. The room preventative maintenance program should include a regular,documented test of smoke detector efficiency and operation.

Emergency Lighting:

1. Emergency lighting should be tested monthly by maintenance.Emergency lighting that is found deficient must be repaired immediately.

2. Documentation of testing is required.

Exit Signs:

1. Exit signs should be properly lit.

2. Verify directional arrows are pointing the correct way to an exit. Directionalarrows that are not correct need to be repaired immediately.

Property Signage and Lighting:

1. Review of exterior lighting and signage. This can be done at the time themonthly utility readings are conducted. Repair or replace any outages.


REQUEST Page 1 of 1

1. In order to maintain each guest room and all Hotel commercial areas inappropriate state of product quality, all maintenance deficiencies shouldbe acted upon and corrected immediately. To facilitate the process, arepair order should be utilized by all Department Heads and Front Desk toinform maintenance of issues which need to be corrected.

2. It is suggested that the maintenance workers maintain a peg board/chartin the shop to track specific duties/tasks for corrective action. Followingcompletion of repair/maintenance order, the Maintenance Worker shouldreturn his copy to the AGM/GM indicating completion of task. By utilizingthis system the General Manager can monitor the performance of the staffand assign time and material dollars to repair cost estimates. TheGeneral Manager is responsible for implementation of this system.

3. A weekly maintenance log (located under forms) to be completed andturned in to the General Manager.

Note: Completed maintenance orders to be returned to the AGM/GM for trackingpurposes. A maintenance items that constitutes an unsafe condition for a guestor associate will be top priority.


ASSOCIATE AREAS Page 1 of 1

Established “associate only” and “storerooms” should be clearly marked andchecked through out the day to ensure these areas are secure and only beingaccessed by associates.

Any unauthorized individual found in these secure areas should be questionedand/or detained by management and associates until their purpose may bedetermined.

Any suspicious person(s) found in or around the property needs to be reported tomanagement and incident report filled out.

SECTION VI AREA S.O.P. 10MAINTENANCE KEY CONTROL

Page 1 of 1

It is of utmost importance that a secure key control system be in place at allproperties whether they utilize electronic locks or standard lock sets.

1. Violation of the key control system will be reported immediately.Depending upon the seriousness of the violation, the General Managerwill determine whether a total hotel re-key is warranted. It is understoodthat the safety and security of our guests and associates will be thecontrolling factor in this decision.

2. A key control system may include:a. Zoneb. Floorc. Sectiond. Utilitye. Grand Masterf. Masterg. Emergency Overrideh. Standard Hard Key(s)

4. All keys will be signed out and signed in by the appropriate level ofauthorization (located under forms)..

Note: All keys must be returned by shift end. No one is permitted to removeany keys from the premise.


POOL MAINTENANCE Page 1 of 1

The best way to kill germs and promote a healthy pool is to maintain androutinely measure, adjust and record chlorine and pH levels. You are requiredto maintain a log (located under forms).

The pool needs to be check at a minimum of three (3) times per day.

It is suggested that the pH be maintained between 7.2-7.8 and chlorine between1.0-3.0 ppm.

SECTION VII AREA S.O.P. 1SALES

CALL QUOTA Page 1 of 1

This is not to be used in place of the HP Sales and Marketing SOP Manual. This is just basic items to be covered by property management

It is the responsibility of the General Manager to meet reasonable sales callquota on a weekly basis.

These weekly sales call quotas are as follows:

1. At least 3 maintenance calls per week2. At least 3 telemarketing calls.3. At least 3 outside calls or appointments.4. At least 3 follow up calls .5. At least 1 site tour.6. At least 3 lobby ambassador leads per week.

GM’s are responsible for holding the sales department accountable for adherence to the Sales and Marketing requirements per the Sales and Marketing Manual.


ADVERTISING/PRINT MEDIA Page 1 of 1

Any advertising must be approved through HP Hotels VP of Sales and Marketing and property RDO’s.

This includes outdoor advertising, rack cards, guestroom directories and brand/hotel promotional materials.

Outdoor Advertising1. Reviews on outdoor advertising should be performed every 6 months andwritten verification should be forwarded to HP Hotels Corporate Office statingoutdoor advertising compliance with franchise standards.

2. The General Manager to review all outdoor advertising for itscondition, painting, lighting, visibility, marketability, etc.


SERVICE MARKS Page 1 of 1

We will comply with all franchise standards regarding the use and display ofService Marks.

All printed materials will include a phrase similar to “Operated by HP Hotels” in the appropriate wording as determined by specific franchise standards.

SECTION VII AREA S.O.P. 5SALES/MARKETING

GROUP ROOM CONTROL Page 1of 1

All group room blocks must be entered into your brand specific PMS system.

Group block protocol for release of unused block is 30 days prior to arrival. Any exceptions must have GM approval. All group room blocks must be monitored and controlled daily after cut-off date.

SECTION VII AREA S.O.P. 6SALES/MARKETING PUBLIC RELATIONS

Page 1 of 1

1. Recognizing the value of free media space and air time when a newsworthy event occurs at our Hotel or involves our associates or guests, it should be immediately communicated to all local newspapers, radio and television stations either in the format of written news release or a telephone call allowing the media representatives to determine the news significance of a particular instance.

2. Copies of press releases and news articles should be forwarded to theHP Hotels Corporate Office, the properties RDO and VP of Sales and Marketing and to franchiser.


GROUP CONDUCT LETTER Page 1 of 1

A group conduct letter (located on web site in Library) is used for groups that includechildren, teens and young adults that will be utilizing the hotel. The groupconduct letter is sent along with the contract and again presented at check-in.


HOTEL/MEETING WEBSITE Page 1 of 1

All hotels are required to carry the maximum number of pictures permitted by thebrand on the branded website.

All property specific web pages must be in compliance with every brand internet online opportunity enhancements that are available at no additional costs. All other online opportunities must have the approval of the VP of Sales and Marketing and RDO.

The brand website and GDS content must be reviewed and/or updated every six months to ensure maximum hotel exposure.


GROUP RATE PROCEDURES Page 1 of 1

The following is the group rate procedure used for all properties:

* Ten (10) or more rooms are required in order to qualify as a “group” rate.

* Hotels with 100 rooms or less would provide one (1) complimentary room forevery 20 paid. Hotels with over 100 rooms would provide one (1) complimentary room for every 25 paid. Complimentary rooms should not be offered unless asked or you are competing for the business with another hotel.

* Based on seasonality of your hotel, a general rule to follow would be 15% discount from your “Best Available Rate/Bar” for net quotes and 10% discount on commissionable rates. Peak season/session/high demand dates/weekday vs. weekend rate quotes should be evaluated on an individual basis.

* Cut-off dates for group room blocks should be 30 days prior to arrivalduring peak season/session/high demand periods and 14 days priorduring low demand periods.

SECTION VIII AREA S.O.P. 1HUMAN RESOURCES

GRIEVANCE PROCEDURE Page 1 of 1

It is our belief that every associate should be a productive member of the Hotelhospitality team at all times. In order to assist with the answer of associatequestions or grievances which may occur:

a. All associates are urged to resolve questions regarding their specific employment with their immediate supervisor.

b. If the issue is not resolved by speaking with a supervisor or the associate feels it is something that can not be discussed with the supervisor, they are urged to discuss the issue or concern with the department manager.

c. Having followed this communication chain and the associate is still not satisfied with the steps taken; the associate is urged to speak to the General Manager.

d. After an associate has spoken to the General Manager and still feels the issue is not resolved, the associate may talk with a grievance automated hot line of First Response at the following number (877) 773-1358 number..This grievance procedure is commonly referred to as the ‘Resolution Ladder”.

Each General Manager will maintain an open-door policy with regard to associate questions and/or problems. Formal requests or grievances should be documented and kept on file at the hotel property.

Any significant grievances (i.e. discrimination, harassment, violence) of any type should be brought to the attention of the Cary Tew and First Response and also the properties RDO and the HP Hotels corporate office.

HP Hotels believes in “Progressive Discipline” and all associate coach, counsel and discipline must be documented with associate signature or witness signature. All documentation must be placed in associate file.


RECRUITMENT Page 1 of 1

Sources of Associates:

Sources of associates should be constantly identified through local contacts within the community. Churches, Senior Citizen Clubs, Trade Schools, Junior Colleges, Work Training Centers, Associate Referral Program and HCareers.com are all example of sources that should be researched.

HP Hotels has a member number for HCareers.com that will allow for a substantialdiscount.

SECTION VIII AREA S.O.P. 3HUMAN RESOURCES JOB DESCRIPTIONS

Page 1 of 1

Each property will have customized set of job descriptions in place for allauthorized job categories. Job descriptions need to be signed off by theassociate during the new hire orientation, placed in the associates file and a copygiven to the associate.

Job descriptions can be located on web-site under library tab.


ORIENTATION Page 1of 1

1. An orientation (located on web-site under library) program must be completed by eachassociate within 3 days by their department manager.

2. It is the General Manager’s responsibility to make certain the AssociateOrientation Checklist has been completed and signed by the newly hiredassociate prior to entry in the payroll system.

3. The orientation should include pertinent facts about the Hotel and thebrands as well as a complete tour of the facility with the objective ofproviding improved customer service and reduced labor turn over

4 A formal Orientation must be done at least 1 time per month by the General Manager for any new employees that have been hired in the previous 30 days.

In addition to the formal orientation individual training such as:

a. Required video’s, training modules and life safety training must becompleted before the actual on-the-job training begins.

b. Introduction and training on brand specific rewards program.


REFERENCES Page 1 of 1

1. In the same manner in which we verify previous employment references ofa potential candidate, we will request from other companies the workhistory of a previous associate. Having verified legitimacy of the request,we should always give honest, factual answers limited to dates of employment, position and eligibility for re-hire.

2. One important question will involve re-hire status and should be answeredwith regard to eligibility to re-hire as well as qualifications and capabilitiesto handle the position.

3. When we give less that a forthright answer, we do our company, ourselvesand the future employer a disservice as well as the individual, whosereferences is being verified as their inability to handle a specific position orjob task will most assuredly become evident at an early stage.

4. Verification of employment should be handled in writing or over thetelephone by return call to the inquiring company (proof of an actualcompany request).

Note: It is the practice of HP Hotels, to comply with all legal requirements relative tothe verification of employment history. All forms pertaining to personnel issuescan be found in the properties compact disc provided by First Response andlocated on web site under library tab.


PRE-EMPLOYMENT SCREEN Page 1 of 1

The following pre-employment screening is required as a condition ofemployment before any applicant can be hired:

a. Background check

b. Credit Check – (cash handling associates and all managerial positions)

c. Criminal Check – (cash handling associates and all managerial positions)

d. Reference Check

e. Random Drug Screen (urine)

NOTE: Always advise the applicant that his/her employment is dependent uponthe results of a background, reference and drug screen. This is known as“conditional offer of employment”. All pre-employment screening requires asigned release by the applicant. All forms located on web site under First Response tab under library.

SECTION VIII AREA S.O.P. 10

HUMAN RESOURCES ATTENDANCE RECORD

Page 1 of 1

The associate attendance record is available on web site under library tab and will be helpful in keeping track of attendance patterns, vacations and time off.

Each department manager/supervisor is required to assist in tracking attendance.

Excessive absenteeism, emerging patterns and tardiness needs to be brought tothe attention of the associate and continual infractions will warrant the supervisor/department manager to follow the progressive discipline policy ofHP Hotels.

Each year the attendance record should be placed in the individual file.


THE DIVERSE WORKPLACE Page 1 of 4

The following is information provided to give you an understanding and insightinto the diverse workplace in regards to generations. This may be helpful inunderstanding your workforce.

Silent “Mature” Generation – Born prior to 1942 – Grew up with Mickey Mouse,Wheaties, Jukeboxes, Flash Gordon, Charlie McCarthy, Babe Ruth, Golden Ageof radio, The Lone Ranger, Tarzan, WWII and the Great Depression.The silent “mature” generation tend to: Respect authority (even when itfrustrates them), place duty before pleasure, believe patience is its own reward;are willing to wait for gratification, value honor and integrity, avoid challenging thesystem, and maintain dedication to a job once they take it.

Baby Boomers – Born between 1942 – 1962 – Approximately 78 millionAmericans – Make up approximately 70% of management employees in U.S.companies – 2% will financially fit enough to retire at 65. Grew up with CaptainKangaroo, Fallout shelters, “Laugh-In”, Peace sign, Romper Room, Slinky, HulaHoops, Bell Bottoms, Ed Sullivan, Tie Dye and TV Dinners.The “baby boomers” generation tend to: Live to work, Maintain a general senseof optimism, enjoy unprecedented influence on government policy and consumerproducts, be willing to go into debt, betting on future income, be team andprocess-oriented, sometimes to detrimental results, strive for convenience andpersonal gratification and preserve their youth and be nostalgic about it.

The “Xers” – Born between 1962 – 1980 – Approximately 48 million Americans– Make up more than 1/3 or the workforce – Have inherited serious baggagefrom the “Boomers” including high public debt, an overloaded social securitysystem and the burden of financially supporting the largest generation to date. -Grew up with the Brady Bunch, Izod, Cabbage Patch Kids, Pet Rocks, “Jaws”,“The Simpson’s”, Microwaves, MTV, Platforms, “Sesame Street” and VCRs.The “Xers” generation tend to : Work to live; and not live to work, view jobswithin context of a contract, believe in clear, consistent expectations, remain witha job linger if employer presents opportunities to grow, view money as only partof the larger equation: contribution to the whole is important, and desireversatility.

The “Generation Y” – Born between 1980 – 1994 – Approximately 68 millionAmericans - Next dominate generation - More afraid of being bored than of beingfired - Known as the generation that is closing the generation gap - They actuallyhave close relationships with their parents. - Grew up with Barney, POGS, X


DIVERSE WORKPLACE Page 2 of 4

Games, Cell Phones and pagers, Teenage Mutant Ninja Turtles, Virtual Pets,Jerry Springer, Pokeman, Britney Spears, Beanie Babies, Spice Girls, MarkMcGwire/Sammy Sosa, Bill Gates and the Internet.The “Generation Y’ tend to: demonstrate respect only after they are treatedwith it, question everything; that’s how they grew up, be more diversedemographically than other generations, live in the moment, rely on immediacy oftechnology, demand clear and consistent expectations to ensure productivity,and believe that earning money translates into immediate consumption.

“People resemble their times more than they resemble their parents.”

SECTION VIII AREA S.O.P. 11HUMAN RESOURCES DIVERSE WORPLACE

Page 3 of 4

Managing Up and Down the Generation Ladder:

1. Managing down a generation enables the blazing of unique paths.

2. Mixing generations means that preconceptions and expectations are indifferent places.

If you want to make things work, you’ll need to tear down disparate pasts andbuild a common base of understanding grounded in your company’s values.

3. In managing up and down the generation ladder, a level of experience thatis neither too little overall nor too much in one place is what trumps age atevery turn.

4. Generational issues can be mitigated by living your entrepreneurial lifewith values, integrity, respect for others and the gift of listening.

Tips for Managing “Baby Boomers”1. Choose face to face communication.2. Give them your full attention.3. Show respect – they are your elders.4. Be friendly.5. They are more formal and expect proper dress and process.6. Are starting to resent being pushed aside by younger colleagues eager foradvancement.

Tips for Managing “Gen X”1. Their approach to authority is casual.2. They thrive in a casual, fun work environment.3. Xers are pessimistic when it comes to their future.4. They have a nontraditional approach to time.5. Generation Xers tend to be technologically savvy.6. Workaholism is not a trait you’ll find in many Gen Xers.7. Family and work balance is extremely important.


DIVERSE WORKPLACE Page 4 o 4

Tips for Managing Gen Y

1. It’s not what you say, but how you say it – miscommunications in tone orstyle.2. Understand the different generational motives – managers should look forways to support echo boomers balanced lifestyle.3. Look beyond appearances – realize that there may be memory and wisdombehind their advice.4. Benefit from diverse opinions – effective teams leverage generationalknowledge to better understand and serve their customers and clients.5. Choose mentors wisely – Echo-Boomers launching careers should skip ageneration when seeking guidance or nurturing.6. Keep and open mind about attitudes – just because others don’t share yourwork ethic, it doesn’t mean they’re lazy.7. Adapt your style to the realities of today’s workplace – navigating the workworld with a singular mindset will inevitably derail your career.Look at not only how we are different but at what unites you with your associates.Communicate open and honestly. Reinforce learning and respect for differingideals about the workplace to get the job done better and faster.

SECTION VIII AREA S.O.P. 12HUMAN RESOURCE

EEO-1 FILING Page 1 of 1

The EEO-1 Filing provides the federal government with workforce profiles bygender and defined race/ethnicity groupings in defined categories.

EEO-1 Filing is due in September of each year and is handled by First Response or Payroll Processing Company

SECTION VIII AREA S.O.P. 13HUMAN RESOURCE

OSHA FILING Page 1 of 1

The Log of Work-Related Injuries and Illness (Form 300) is used to classify workrelatedinjuries and illnesses and the extent and severity of each case.

Each hotel is required by law to complete this form and post it on the mainassociate bulleting board or by the time clock from February 1 through April 30th

of each year. Forms are not sent in and must be kept on file for five (5) years.

Information, instructions and form can be found atwww.osha.gov/recordkeeping/new-osha300form1-1-04.pdf.

operations manual 734

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