H Group Holding, Inc. and Subsidiaries - Page 30

                                        - 16 -                                         

          in Delaware on February 27, 1974, as a wholly owned subsidiary of            
          HIC.  IPS could provide either full or partial technical                     
          assistance.  Full technical assistance involved comprehensive                
          support of the hotel owner’s designers and engineers from the                
          first architectural drawing to the last day of construction,                 
          including writing specifications, reviewing internal documents,              
          and reviewing and critiquing back room operational designs.  In              
          contrast, partial technical assistance involved taking over a                
          project that is either under construction or fully built and                 
               IPS offered consulting services on a hotel’s design (by                 
          approving or recommending the architect’s drawings), but it was              
          not responsible for overall design.  It also could recommend                 
          sources for the wide range of items--from structural building                
          members to bedding--that a hotel might need.  Occasionally, IPS              
          subcontracted aspects of the project to other companies.  In most            
          cases, however, IPS established a flat fee for the specific                  
          technical services it would provide to a hotel, purportedly based            
          on the Hyatt International group’s experience with the                       
          anticipated expenses.  During most of the years at issue, IPS’               
          expenses exceeded its revenues.                                              
               The Hyatt International group maintained an operational                 
          structure allowing for general strategies to be created and                  
          organized at the top corporate level.  The choice to implement               

Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011