H Group Holding, Inc. and Subsidiaries - Page 101




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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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