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postulations: that, generally, brand name is a less significant
factor to hotel guests than location; chain hotels constitute a
much smaller percentage of the international market than that of
the U.S. hotel market; smaller hotel chains have lower brand
awareness; there was no premium paid for Hyatt International
hotel rooms over competitors’ rooms; there was a small number of
guests from the United States (who would be familiar with the
Hyatt name) traveling to the Asia-Pacific area where most Hyatt
International hotels were located; the percentage of U.S. guests
in most Hyatt International hotels was below market average; and
the Hyatt International group management fees were lower than
average.
We do not accept the Mercer conclusion that the Hyatt name
has no value in the context of international operations. Hotel
location may be an important or possibly even a primary factor in
a guest’s hotel selection; however, it has been shown that brand
name is an important factor in attracting certain categories of
guests. BVS found that trade names are important for incremental
business, even where most of the reservations were secured
through local contacts. Petitioners argued that Hyatt
International hotels earned no premium on the rates they charged
as compared to other competing hotels. Hyatt International
hotels, however, competed favorably with luxury hotels, including
those run by Hilton International, reflecting that the Hyatt
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