H Group Holding, Inc. and Subsidiaries - Page 35




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          These executives, organized by geographic regions, either worked             
          for one of HIC’s master hotel management subsidiaries or for HCS.            
          Hyatt International group’s senior management assumed primary                
          responsibility for developing relationships with hotel owners and            
          maintaining their trust.  Generally, management contracts were               
          sourced in personal relationships with owners, and those                     
          relationships were important to the success of the Hyatt                     
          International group’s management and operational systems.                    
               The general manager, in effect, operated as the chief                   
          executive officer of the hotel.  Each general manager had the                
          power to make day-to-day decisions, interact with the owner, and             
          generally run the hotel as an autonomous business.  Offers of                
          employment for general managers were prepared and executed by                
          authorized Hyatt International divisional or regional personnel              
          on divisional or regional letterhead.  Owners generally                      
          recognized the general manager’s importance and tended to rely on            
          the Hyatt International group to provide personnel who would be              
          key to the hotel’s success.  The owners worked with the hotel’s              
          general manager to ensure that their interests were being pursued            
          and generally looked to the general manager when they had any                
          operational questions.  In general, the owner’s involvement was              
          limited to participation in general management activities, such              
          as budgeting and finances; original, amended, or renewed                     
          management contracts; hotel design and renovations; general                  





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