H Group Holding, Inc. and Subsidiaries - Page 41

                                        - 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               
               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  Next

Last modified: May 25, 2011