H Group Holding, Inc. and Subsidiaries - Page 70




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          their area work.  Generally, HHK, HS, HESA, and HIC supervised               
          hotels within their respective geographic regions--i.e., Asia-               
          Pacific, Southeast Asia, Mexico, and Central America, and Europe.            
          Each management subsidiary maintained staff specialists/employees            
          in the functional hotel management areas, including finance, food            
          and beverage, human resources, and clerical.  Unlike management              
          staff working for HHK and HS, HESA and HIC management staff did              
          not have dual roles and did not also serve as hotel staff.                   
               In addition to the direct supervision of particular hotels,             
          HIC provided all of the international group’s hotels with certain            
          services.  HIC was involved in coordinating insurance and                    
          employee benefits and disseminating training materials.  It also             
          acted as a clearinghouse for the production, maintenance, and                
          distribution of the operations manuals.  HIC staff acted as                  
          liaison to outside agencies, such as travel associations and                 
          airlines, for the purpose of worldwide marketing.  HIC conducted             
          internal audits, budget and contract reviews, and made staffing              
          recommendations for its subsidiaries.  HIC set the service                   
          standards for the Hyatt International group and, along with its              
          master hotel management subsidiaries, monitored the performance              
          of the Hyatt International hotels.                                           
               Preopening and operating expenses of hotels were charged to             
          the hotel owners, including:  Hotel staff salaries and benefits;             
          marketing and sales expenses; and office, rooms, and restaurant              





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