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was established by means of a joint venture agreement with an
unrelated company, VIS, and was owned 49 percent by HIC (Mexico).
Service subsidiaries included HCS, a Hong Kong corporation, which
provided sales, marketing, and reservation services to all Hyatt
International hotels, and IPS, a U.S. corporation, which provided
technical assistance, also known as design services.
As a management/services organization, the Hyatt
International group’s success was heavily dependent on its
employees. Initially, the Hyatt International group’s size and
the volume of hotels managed increased because of employees’
efforts in cultivating relationships with hotel owners. In the
beginning, staff was hired from other hotel chains and groomed
for advancement within the Hyatt International group. As time
progressed and the new hotels were opened, expanding the Hyatt
group, executive staff could be chosen from within the ranks of
Hyatt International hotel personnel.
Executive committees ran each hotel’s day-to-day operations.
The executive staff at the flagship hotels of the Hyatt Regency
Hong Kong and the Hyatt Regency Singapore also concurrently
served as area directors and as staff of the master hotel
management subsidiaries HHK and HS, respectively. This
duplication of responsibilities was thought to lower operating
costs. At first, employees received their salaries directly from
the hotels. In time, the salaries were paid by HHK or HS for
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