H Group Holding, Inc. and Subsidiaries - Page 31

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          general strategy remained with the individual hotel’s management.            
          Rather than strive for uniformity of appearance and                          
          accommodations in its properties, the Hyatt International group              
          was able to develop and manage unique hotel properties.  Each                
          property was fashioned to be culturally correct and                          
          geographically distinct within a particular country.  Guests were            
          thereby permitted to recognize or appreciate a local character               
          while enjoying a high level of service.  In spite of that                    
          flexibility, the Hyatt International group, in substantially all             
          cases, has used the name Hyatt in the hotel names and used the               
          Hyatt logos and slogans, such as  “Don’t you WISH YOU WERE HERESM”           
          and “touch of Hyatt”.                                                        
          III.  Modus Operandi of Hyatt International Group                            
               While the Hyatt International group has taken some equity               
          positions and in limited circumstances has been involved in                  
          hotel leases, its modus operandi has, generally, been to pursue              
          management contracts as a means to expand the Hyatt chain and to             
          increase profitability.  In the international hotel business, the            
          management contract approach places much of the operating risk on            
          the owner, not the manager.  Consequently, the owners’ rewards               
          are also greater, and they generally receive the larger share of             
          the hotel operating profits and the benefit from appreciation in             
          capital value.                                                               

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