-147-
hotel management contracts. In yet another instance, an MHM
employee helped Connolly with union negotiations. Also, after
Prudential awarded the Midland, Texas, hotel’s management
contract to GHM, MHM’s employees helped Connolly find an onsite
manager for that hotel. Although Connolly did give MHM some
occasional help and advice, such as sales presentations to hotel
owners, the volume of services that MHM employees furnished to
GHM greatly exceeded the volume of services that MHM received
from GHM and Connolly.75
In late 1983, Prudential awarded to MHM the hotel management
contract for Prudential’s Hilton-franchised Twin Sixties Hotel at
Dallas, Texas (the Twin Sixties Hotel). Shortly thereafter, MHM
and Essex Partnership entered into a new “Representation and
Marketing Agreement” pursuant to which Essex Partnership received
a percentage of MHM’s fees under the Twin Sixties Hotel
management contract.76 Exh. 350, exh. A. The MHM/Essex
agreement was modified to provide that MHM would pay 70 percent
of its management fees from the Madison Hotel (an increase of 40
75 This paragraph appeared in the STJ report at 58-59 n.22.
76 Robert James, MHM’s president, believed the consulting
and participation agreement for the Twin Sixties Hotel was
entered into to replace the income that Essex Partnership would
lose following the expected termination of MHM’s management
contract for the Allentown Hilton, as the Allentown Hilton was
then in the process of being sold.
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