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The employees of the five-star Grand View Hotel in downtown Shenzhen have been managing the hotel since its former general manager disappeared in September.

The hotel's 165 employees were owed more than 3 million yuan (US$379,746) in unpaid wages when Gao Lihui, then general manager, fled with an unspecified amount of money Sept. 27.

The hotel, which owed more than 4 million yuan to water, power and gas companies and other suppliers, was on the brink of closure on Sept. 29 when its power and gas supplies were cut off and only 0.25 yuan was left in its bank account.

Zhu Wencheng, the hotel's sales manager, said in a telephone interview yesterday that the hotel resumed operation Oct. 1 after the staff members elected Wang Zhitao as the new general manager, and named other senior employees to run the hotel.

"All the staff members are now in high spirits. We will continue to work in the hotel," Zhu added.

The hotel's owner Li Jun returned to Shenzhen two weeks ago and is glad that the employees are turning the hotel around, according to Zhu. Li had been overseas for medical treatment after entrusting management of the establishment to Gao, the then financial manager, in 2002.

Li has recognized the new management and is now dealing with the legal affairs and debts, according to Zhu.

Despite concerns over the legitimacy of the new management, local government departments are happy with the staff members' efforts to "rescue" the hotel, the Southern Metropolis Daily said yesterday.

The employees have received their back wages, Zhu said, adding that "we will seek compensation from Gao Lihui" She said the staff members had suffered mental anguish during the past year, when their salaries were unpaid for 11 months under Gao's management.

Since the employees began running the hotel six weeks ago, the hotel has been able to pay its water, power and gas bills and taxes on time, reports said. But the hotel has to purchase most of its other supplies in cash and most suppliers remain skeptical about the hotel's ability to pay. The former general manager fled with the hotel's official chop, necessary for signing contracts.

The staff members are confident everything will return to normal soon, Zhu said.

Located on Fuhua Road in central Futian District, the hotel opened for business in 1999. It has 221 guest rooms.

When the owner left Shenzhen in 2002, Gao was made legal representative of the hotel, a position that allowed him to sign major business deals and represent the hotel in legal proceedings. However, Gao registered Zhang Xiaoming, a driver for the hotel who had just been employed for three months, as the new legal representative, before Gao disappeared in September, proof of his mischievous preparations.

(Shenzhen Daily November 15, 2006)