EC Meeting Papers January 2020

Agreement in relation to the request for a loan. December 2020

A loan of £65,000.00 is made immediately to the GFTU ET Trading Company. This amount is added to the outstanding loan amount now totalling approx. £390,000.00 repayable without interest over the course of the next two years as indicated in the budget proposed by the Hotel Senior Management Team for 2020. The loan is subject to written agreement to be signed by the Hotel General Manager and the GFTU General Secretary. -full repayment to be clearly identified in monthly P&L and management accounts of this £65,000 by September 15 th 2020. -that a member of staff directly accountable to the GFTU is made responsible for all hotel expenditure, purchase orders, authorisations, posting, comparing with budget and cash flow forecasts and reporting to the GFTU Head of Finance and General Secretary on a weekly basis; -that performance targets are agreed with the hotel general manager and cascaded down to all staff by line managers; that it is fully recognised by the GFTUET Trading Company and hotel SMT that this is the last possible loan payment and in the event of flagging future difficulties the they must make alternative arrangements; -that the ambitious marketing budget is closely monitored with monthly reports on progress and income and activity generated against marketing inputs; -that SMT meetings are regularly held and diaryed in advance and reported on; that a business plan for the use of Room 26 and outside areas is drawn up within the first quarter of 2020; -that a transparent staff grading structure is introduced in the first quarter of 2020; that there is a proposal for the use of the extension lobby area within the first quarter of 2020; that there is an extensive review of the trading position and hotel organisation and management in June 2020. Should the loan be defaulted over two months or the budgeted surplus not be reached the GFTU will begin immediate exploration of sale of the asset and re direction of investments. The loan agreement is subject to the following conditions: -that the hotel directors receive a report on all pricing and contractual arrangements;

Signed

General Secretary GFTU

Signed

Hotel Manager on behalf of the GFTU ET trading company.