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employees of Connolly’s hotel management company. However,
establishing such a hotel management company presented a problem
for Connolly, as Connolly’s management company, among other
things, would be required to employ a financial manager and an
accounting staff to prepare and issue the financial reports on
the Gateway Hilton’s operations that Prudential expected.
Moreover, its full-time employment of such personnel to perform
these and other required services could well be uneconomical, as
Connolly’s company would be managing only one or at most two
hotels. As discussed in detail below, Kanter and Eulich provided
a solution to assist Connolly in managing the Gateway Hilton.
e. Gateway Hotel Management Co. and Essex Corp.
As previously mentioned, Eulich wanted MHM’s hotel
management business eventually to include MHM’s management of a
number of large hotels. Eulich previously knew Kanter from being
involved in certain prior business ventures in which Kanter had
helped raise capital. He believed that Kanter’s business
contacts, particularly those contacts attributable to Kanter’s
association with the Pritzker family, could be beneficia1 to MHM,
as Kanter knew many people in the hotel industry, including
individuals who owned the large hotels that MHM wanted to manage.
From Eulich’s perspective, an association with Kanter would be
beneficial if MHM could obtain one hotel management contract for
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