"I wanted you to know up-front, Dichondra," said Sharon McKay to Dichondra Johnson, the manager of a 350-room full-service hotel. Dichondra was meeting for breakfast at Sharon's request, and the purpose of the meeting had become clear almost immediately.

As regional vice president for sales, it was Sharon's job to secure new management contracts for Richerland Hospitality, one of the largest management contract companies in the United States.

"Thanks for letting me know Sharon," said Dichondra, "but I had already heard from our hotel owners that you were going to present a proposal." In fact, the owners of the hotel had let Dichondra know that Richerland had approached them with the idea of assuming the management of the hotel.

Because the hotel Dichondra operated had high visibility in the city, and because it was very profitable, it was not unusual that a management company would attempt to secure a management contract for it. It happened almost every year.

"Don't be concerned, Dichondra," continued Sharon. "Our proposal will recommend that we keep most of your management team in place, including you . . . of course! You will love working for us!"

1. What factors would cause hotel owners to think about selecting a management company to operate their hotel?

2. What types of owners' groups do you believe are best served hiring management companies?

3. Do you believe Dichondra should inform the others on her management team that a proposal for a management contract is being submitted to the hotel's ownership? Why or why not?

4. What factors would influence Dichondra's decision to remain as the hotel's GM under a Richlander Hospitality operating agreement?