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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
operating.
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
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