- 15 - International group and domestic hotels based on their individual chain allocations. For 1978, 1979, and 1980, Hyatt Domestic charged the Hyatt International group hotels approximately $1,050,000, $1,200,000, and $1,375,000, respectively. During 1981, HCS contracted for the development of a computerized reservation system to be called “IMAGE”. David Cook, an HIC employee, spent about a year and a half in Germany training to become the systems manager for IMAGE. During 1983, Mr. Cook returned from Germany, and IMAGE was installed at Hyatt Domestic’s information services headquarters. Mr. Cook traveled to various cities implementing the IMAGE system. Another HIC employee trained reservations personnel. The IMAGE reservations system was not fully implemented. From 1981 through 1985, HCS expended more than $4 million on the IMAGE system with funds that had been advanced by HHK for the IMAGE system development. When the Hyatt International group executed a management contract for a hotel that was to be constructed or when a hotel under contract underwent a major renovation, the Hyatt International group frequently provided design consulting services, also known as technical services, to the hotel owners in exchange for a fee. The Hyatt International group was not prohibited from supplying these services to hotels outside the Hyatt chain. These fees were earned by and payable to International Project Systems, Inc. (IPS), which was incorporatedPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011