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Company Background Rangkian Hotel Seri Malaysia(RHSM) was established in April 1994 to manage a simple cost hotel chain in the country. The company has a paid up capital of RM131.34 million. A total of RM118.93 million (90.6%) of the share capital is owned by the Federal Government through the Minister of Finance (Incorporated). The other shareholders are the State where the Hotel Seri Malaysia. To safeguard the interests of the Federal Government and the State Government, RHSM is responsible for determining policy for hotel management and franchise system to make sure the policy adhered to by the parties. Type of business The franchise system called System Francais Hotel Seri Malaysia has several main objectives include encouraging small entrepreneurs, especially Bumiputera entrepreneurs to venture into the tourism industry; provide simple accommodation for local and international tourists as well as improve the quality of services provided by the hotel in addition to the category of simple be a catalyst for private entrepreneurs to invest in this area. Section 6 (d) of the Audit Act 1957 requires the Auditor General to conduct an audit to assess whether the activities of Government managed efficiently, economically and in line with objectives. The audit included various activities such as construction, maintenance, law enforcement, procurement, asset management, tax management and improvement of socio-economic program. Under the Hotel Seri Malaysia Franchise System, Franchisor RHSM is the owner of the system and also the owner of Hotel Seri Malaysia while the franchisee (hotel operator) also is an individual Bumiputera individuals appointed to manage the Hotel Seri Malaysia Hotel Seri Malaysia Franchise System. To ensure that the hotel management made in order, RHSM has appointed a management company of Gateway Inn Management Sdn. Bhd....

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