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The Bronx Gourmet

Hotel and Suites

Executive Letter to CEO


Regarding questionable practices

Noemi Gonzalez
Mr Eggers
FSM 320
9 February 2015

February 9, 2015
Noemi Gonzalez
The Bronx Gourmet Hotels
1841 Somerton Place
Virginia Beach, VA 23464

To: John Ragoletti, CEO


1902 Atlantic Ave
Virginia Beach, VA 23452

Re: Questionable practices regarding our hotels accounting firm

Mr. Ragoletti,
It is with my deepest gratitude that I thank you for the opportunity to revise our accounting
firms operational practices. I understand there have been several income statements that have
shown our quarterly numbers not looking exactly as they should. I plan to investigate this matter
and ensure there is no unethical behavior taking place. My belief on ethics is very simple. I
believe we have a moral and legal obligation to conduct business for this hotel honestly and

openly to ensure everyones success. This moral rights belief has allowed me to become the
person I am today, not just in business but in my personal life as well.
After careful review, I plan on looking at the different accounting branches we have within our
company. The first thing Id like to do is bring in an experienced accounting firm to evaluate
what we currently have and give us their honest feedback. For this, I have chose the top three
accounting firms in the United States, and they are willing to pay us a visit within the next
coming weeks to help us. They are Coastal Hospitality Associates, Hotel Accounting and Finance
at Crestline Hotels, and the Commonwealth Lodging Leadership Team. I have researched their
company profiles and found that each one poses a unique service to us as each one of them has
something different to offer. However, here is a brief description of each one.
Coastal Hospitality Associates is headed by Thomas Lyons. Mr. Lyons primary focus includes
the overall planning and development of hotel sites, their architecture and design, new
construction and capital planning/reinvestment strategies. A graduate of Georgetown University,
founded Tidewater Hotels & Resorts in 1968. During the course of his career, Mr. Lyons has
developed and managed over 30 hotels in Virginia and North Carolina. In June of 2008 Mr.
Lyons sold Tidewater to Crestline Hotels & Resorts, Inc. Simultaneous with the sale of THR to
Crestline, Mr. Lyons also sold eight Marriott flagged hotels to Apple REIT. Following the sale,
Mr. Lyons formed Weatherly Investment Associates, LLC in July of 2008 to serve as an Asset
Management and Real Estate Holding company to oversee the ownership duties and
requirements associated with ten hotels retained by Mr. Lyons. In anticipation of the expiration
of the management contracts at several of his hotels, Mr. Lyons formed Coastal Hospitality
Associates, LLC to assume the management of the hotels as the contracts mature and expire
(http://www.coastalhospitalityhotels.com/about.html).

The second firm that caught my attention was Crestline Hotels & Resorts,
LLC Executive Management Leadership Team. They offer leadership
combined with professional opportunity and personal growth is the
foundation of success for Crestline Hotels & Resorts. Each of the Company's
senior executives averages more than 25 years of hospitality experience and
has built an esteemed reputation upon the management of financially
successful hotels. Through these strong leadership role models, and a focus
on internal professional development in a competitive atmosphere, Crestline
is building the hotel industry leaders of tomorrow as part of our hotel
management team today. It is this focus on developing the best talent in the
hospitality and hotel management industry that radiates from each of our
Senior Executives as we work towards our ultimate objective - enhancing
each hotel's value for the owner and hotel management team
(http://www.crestlinehotels.com/hotel-management-leadership-team.aspx).
Lastly, the Commonwealth Lodging Leadership Team headed by Timothy
Stiffler. Timothy J. Stiffler is President of Commonwealth Lodging
Management, LLC. In 2008, Mr. Stiffler completed the sale of Tidewater
Hotels & Resorts, a nationally ranked top 50 hotel management company
where he served as President for 18 years. Tidewater developed, owned and
operated 24 hotels in Virginia and North Carolina. The company was a
franchisee and strategic development partner for Marriott International.
Other franchise affiliations included InterContinental Hotel Group, Starwood
Hotels, Hilton Hotels, Choice Hotels, and the National Park Service. Mr.

Stifflers experience includes ownership and operating management of an


award winning, nationally ranked hotel management company, including all
aspects of hotel development, condominium development, financing,
franchise relations and licensing of hotels. Mr. Stiffler is an honors graduate
of the University of Virginia. Prior to taking over the operations of Tidewater
Hotels & Resorts, he worked for ten years as a vice president in hotel finance
and commercial banking in Virginia and Washington, DC. Mr. Stiffler
currently serves on the board of directors for Fulton Bank and Norfolk
Academy
(http://www.commonwealthlodging.com/hotel_management_leadership.html)
.
Fully understanding that we do not live in a perfect world, I know there will
have to be follow up regarding the changes that will take place. After
speaking with the firms and their representatives, I have decided that the
best fit for us is the last firm I mentiond, the Commonwealth Lodging
Leadership Team. They have a proven track record and have experience in
dealing with delicate situations like ours. I have arranged to have them come
visit us next week for a review and see if they are willing to help us.
I understand the employees might not take well to the changes they are
going to impose on us, but truth of the matter is that we need a change or
we are very possibly looking at the idea of being shut down, and that is the
last thing anyone wants. I plan on recommending a check and balance type

of approach regarding our income statements and financial paperwork. I will


assign people to each department ensuring they have revised the
statements that are coming to contribute to the final income statement. I will
then read each document myself to ensure it is correct before submission.
Once it reaches the accounting department, they will have to revise numbers
by hand, without the use of a computer, to ensure accuracy in information
and where that information belongs. By doing this, having more than two set
of eyes on everything, the problem can be pinpointed and eliminated. Once
the staff, board of directors, and upper management such as yourself, see
that we are all on the same page, the company will revert back to the days
before our accounting firm became questionable in their practices.
I believe together we can make this work. It is important for the future of our
company, our hotels and their guests as well as our very own livelihood. This
new system of checks and balances with ensure that The Bronx Gourmet
Hotels continues to strive and be the best hotel servicer on the East Coast. I
appreciate your trust in this matter and promise to deliver a swift and
amicable outcome.
Once again, thank you for the opportunity and I promise an outcome that will
be to your satisfaction.
Sincerely,

Noemi Gonzalez

Noemi Gonzalez

References

http://www.thefreelibrary.com/Crestline Hotels & Resorts Appoints Justin J. Presnol General


Manager
http://www.commonwealthlodging.com/
Welcome to Coastal Hospitality Associates, LLC. (n.d.). Retrieved February 9, 2015, from
http://coastalhospitalityhotels.com/

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