-141-
in Allentown, Pennsylvania (the Allentown Hilton). Clifford,
Transcr. at 1667.
In late 1981, GHM received from Prudential a management
contract to operate the Gateway Hilton, and, in February 1982,
GHM received a management contract to operate another Hilton-
franchised hotel that Prudential owned at Midland, Texas (the
Midland Hilton).71 Exh. 695. Eulich believed Kanter assisted
MHM and Essex Partnership in obtaining the management contract
for the Gateway Hilton. Eulich, Transcr. at 1634. Eulich’s
testimony on this point is revealing. In short, Eulich
considered the Gateway Hilton management contract to fall within
MHM’s portfolio of contracts (even though the contract
technically was awarded to Connolly/GHM) because MHM’s employees
provided all the essential services required to manage the hotel.
g. Essex Partnership
Essex Hotel Management Co. (Essex Partnership) was formed on
January 1, 1982, and apparently was intended to supplant Essex
71 Although Ostroff and Prudential ultimately awarded the
Midland, Texas, hotel’s management contract to GHM, GHM and MHM
had each submitted bids on the Midland hotel’s management
contract. During this time, Prudential usually obtained bids
from at least three hotel management companies for a particular
hotel’s management contract. Ballard and Lisle were aware
Connolly was awarded the Gateway Hilton management contract, and
Lisle was aware Connolly was awarded the Midland Hilton
management contract. Exh. 695; Ballard, Transcr. at 186-187;
Ostroff Transcr. at 1371, 1374, 1377-1378.
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