H Group Holding, Inc. and Subsidiaries - Page 42

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          or another hotel.  When planning a new hotel location, the Hyatt             
          International group looked for experienced chain employees for               
          the general manager and executive committee for the new hotel.               
          Generally, the general manager and area directors recommend                  
          executive committee staff for transfer and promotion.  The                   
          selection and transfer of general managers and certain executive             
          staff, however, required HIC’s approval.  Similarly, senior staff            
          recommendations for the general manager’s and executive committee            
          member’s compensation was also subject to HIC’s approval.  From              
          their first position, employees knew their career would be                   
          determined by the Hyatt International group, not the hotel owner.            
               The general manager and executive committee staff at certain            
          Asian flagship hotels, such as the Hyatt Regency Hong Kong and               
          the Hyatt Singapore, served concurrently in senior executive                 
          positions with HHK and HS.  Initially, the salaries of HHK and HS            
          employees and related overhead expenses were paid entirely by the            
          hotels.  Later, a portion of those salaries was paid by the Hyatt            
          International master hotel management subsidiaries, after they               
          assumed increased responsibility for new hotels.  In the early               
          1980’s, HHK began to hire and pay full-time clerical staff and               
          specialists in positions such as marketing, food and beverage,               
          engineering, and finance.  For certain hotels, the executive                 
          staff (usually general managers and controllers) continued to                
          have dual roles.  For example, Brian Bryce, the first general                

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