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the Hyatt Aryaduta which was ranked fifth or sixth. Near the
conclusion of the negotiations, the investor group demanded that
the Grand Hyatt Jakarta be the only Jakarta hotel to display the
Hyatt name. Mr. Pury conveyed this demand to the Hyatt Aryaduta
owners, who were aware that President Suharto’s son was involved
in the new hotel. On January 1, 1986, the Hyatt Aryaduta Hotel
owners agreed to permit HHK, at its election, to remove the Hyatt
name in exchange for a reduction in management fees from 3 to 2.5
percent and a reduction in incentive fees from 10 to 5 percent.
In addition, the Hyatt Aryaduta Hotel owners also agreed to
construct, furnish, and equip a 132-room extension.
On January 14, 1986, HHK entered into a management agreement
for the Grand Hyatt Jakarta, which opened in March 1991. Around
the same time, the Hyatt Aryaduta’s name was changed to The
Aryaduta. Both hotels were very successful operations for HHK.
B. Century Hyatt Tokyo Agreements
Odakyu, a Japanese conglomerate of public and private
companies, among its other business activities, provides travel
and construction services and owns real estate, department
stores, railway lines, and hotels. Odakyu owned three hotels and
a national travel agency in Japan. The hotels were operated
under the Century Hotel name and logo, which was registered by
Odakyu in Japan. Typical of Japanese hotel owners, Odakyu did
not wish a management contract relationship and preferred a
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