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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 incorporated
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