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Resolving Disputes and Keeping Your Hotel Stable

December 8, 2017Articles, Experts in Hotels and Restaurants BlogBy PGAuthor
court appointed receiver

Disagreements are common in the hotel business but any owner should want these to be resolved rather than have it be the downfall of an enterprise. It’s in the best interest of the business if parties agree or at the very least, have an understanding. Hotel receivership management can help bridge this gap, or at the very least provide a buffer between the parties.

Business is about creating relationships and sustaining those relationships, but once it’s broken, parties will find it hard to mend. As such, every aspect of the business will begin to suffer. There’s absolutely no positive result that comes from the break-up of a business, particularly if the problem originated with a dispute. This is why it’s important for a business to settle their disagreements before anything else becomes worse.

Hotel Receivership Management

However, there are occasions when break-ups are necessary. In this case, parties must come to an agreement that they both agree with. And one of the most important things they can agree on is the continued operation of a business. Partnerships that end aren’t unusual in the world of business, but it would be better for the business to stay operational despite having this happen.

In case the business suffered as a result of the split or one of the partners couldn’t run it as smoothly as before, this is where hotel receivership management services can come into play. Hotel receivership management can come in and help sort everything out to get the hotel back on its feet. However, this can be the case if the business falls slightly apart.

But what if things can still be mended to some extent? This is where mediation comes in. Having a mediator help sort out the mess is better than having everything dragged out to court. One of the biggest advantages of this method is on the cost side. Litigation is expensive and is best avoided.

Mediation

The mediation process is an informal one, although still confidential. This is as long as everyone involved decides to proceed with arbitration or litigation. A mediator should always be a neutral party, whether from a law office or someone from the hotel industry. There’s an advantage to using either of the two.

Legalities of any dispute will be best handled by someone that has practiced law. Someone from the industry can better understand the troubles and may even have alternative suggestions other than court. But wherever a mediator is from, they must always have one goal: act as a facilitator between both parties in order for them to lean towards or reach a settlement.

An exchange of views is almost always the start of a mediation conference and this can continue on until both parties have come to an understanding. Or, the mediation may end up turning over to the courts if so decided by the parties. However, that’s what hotels need to avoid because the costs could be deadly.

The main goal of mediation is ensuring the interests of both parties. Hotel receivership management can be a short term solution for getting things back on track as well. Also, sometimes the best interests of both parties may mean agreeing on a bad settlement. Then again, this is much preferred over a lawsuit that could spell the ruin of a business.

 

 

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Perry Group International is a consortium of hospitality management services and seasoned hospitality consultants with significant operations, marketing and financial experience. Our clients include both nationwide and international assignments.
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