- 27 -
leases were terminated for various reasons, including the
following: (1) An owner might become dissatisfied with Hyatt
International’s management. For example, the contracts for the
Hyatt Regency Toronto and Hyatt Vancouver Airport, two of the
three Canadian Hyatt International hotels, terminated due to the
owners’ dissatisfaction with the operating results and failure to
meet the contractual profit targets, respectively. (2)
Conversely, the Hyatt International group might become
dissatisfied with the owner, including the owner’s unwillingness
to renovate the property. (3) Forces of nature or the effect of
politics can be the cause of involuntary termination.
A strong owner-management relationship is essential to
implement necessary improvements to hotels because owners are not
usually eager to bear the high costs of improvements. By the
mid-1980’s, the Hyatt International group’s growth enabled it to
be more selective in its management relationships. At that time,
the group began eliminating poor performing and below-standard
properties.
The Hyatt International group played an important role in
the careers of the people hired and was responsible for
determining hotel employees’ compensation. Employees hired for
management positions were subject to being reassigned to other
hotels. The Hyatt International group identified promising hotel
staff members and positioned them for promotion at their current
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011