H Group Holding, Inc. and Subsidiaries - Page 32

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               Basically, the hotels connected with the Hyatt International            
          group’s business can be classified in three general categories:              
          “takeover[s]”, “shell[s]”, and “new hotel[s]”.  Takeovers involve            
          hotels where one management company succeeds another in managing             
          a property that is fully operational.  When a management company             
          becomes involved during hotel construction, it is called a shell.            
          Because the shell’s building is partially constructed, the                   
          fundamental design is incomplete, and the opportunity remains for            
          design revisions.  Through the mid-1980’s, the majority of the               
          Hyatt International hotels were either takeovers or shells,                  
          leaving the Hyatt International group with little or no influence            
          over the design of the hotels.  In the case of “new or ground-up”            
          hotels the management company is involved from the start of the              
          hotel project design and prior to any construction.  Most of the             
          Hyatt International hotels opened after 1985 have been ground-up             
          properties where there was involvement in the design of the                  
               To be effectively involved in the design, a hotel management            
          company must work closely with the hotel owner or its                        
          representative, the architects, and the project manager.  The                
          hotel owner or its representative is the primary force behind the            
          hotel development, making the choice of architect, project                   
          manager, and the type of property to be built.  For example, the             
          owner may choose a luxury, business, or economy-type hotel.  The             

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Last modified: May 25, 2011