-260-
6. Eulich/Essex Partnership
Eulich was interested in obtaining management contracts for
large hotels for his company, MHM, and in 1981 he approached
Kanter for assistance in this regard.113 At the time, MHM was
managing one large hotel (the Madison Hotel) in New Jersey. In
August 1981, MHM was awarded a contract to manage another large
hotel, the Allentown Hilton.
Beginning in the fall of 1981 and into early 1982, Kanter
and Eulich organized Essex Corp. and Essex Partnership. The
organization of these entities coincided with Prudential’s
decision to award the management contracts for the Gateway Hilton
(fall 1981) and the Midland Hilton (no later than February 1982)
to Connolly (the onsite manager of the Gateway Hilton). Ballard
and Lisle were instrumental in awarding these contracts to
Connolly, even though they knew that Connolly did not have the
support services (personnel) to manage the hotels on his own.
113 Eulich testified in pertinent part:
Kanter was the person whose influence and contacts that
we wanted at MHM because of his--again, his involvement
as one of the founders of Hyatt International, his
involvement with the Pritzkers, and his involvement,
significant involvement with this Mullett Bay Resort.
I mean, the man--he knew a lot of people in the
hotel business, and he knew people who owned the types
of properties that we wanted, and we were not able to
attract, because we were running the two-story, you
know, freeway-oriented motels. [Eulich, Transcr. at
1633-1634.]
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