H Group Holding, Inc. and Subsidiaries - Page 49




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          hotels successful.  Data were also exchanged on candidates for               
          promotion to various positions.                                              
          V.  Agreements Between Hyatt International Group Entities and                
          Hotel Owners11                                                               
               A.  Hyatt Aryaduta Jakarta Agreement                                    
               On December 18, 1975, the owners of the Aryaduta                        
          (Ambassador) Hotel located in Jakarta, Indonesia, and HHK entered            
          into a 10-year management agreement.  The owners agreed to                   
          refurbish the existing hotel and to complete certain unfinished              
          floors.  The parties agreed that the hotel name would be changed             
          to the “Hyatt Aryaduta Hotel”.  In the early 1980’s, Andre Pury,             
          the Hyatt International regional director for Indonesia,                     
          initiated negotiations with the Hyatt Aryaduta Hotel owners for              
          further renovations and an extension of the management contract.             
          On October 16, 1981, the owners entered into an agreement with               
          IPS for the renovation, but the work was delayed for several                 
          years.                                                                       
               Around the same time, Mr. Pury located a group of investors             
          interested in constructing a new hotel in Jakarta to be known as             
          the Grand Hyatt Jakarta.  Included in the investor group was the             
          son of Indonesia’s President Suharto.  The new hotel was intended            
          to be at the top end of the Jakarta hotel market, in contrast to             


               11  Only selected agreements have been addressed in the                 
          findings of fact to show patterns or the types of contractual                
          relationships that were utilized.                                            




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