Conquer and divide (Hyatt)

Conquer and divide (Hyatt)

Gimbel B. Fortune (Switzerland), 2005, Vol. 152 No. 7, Start page: 65, No. of pages: 7

Purpose – to analyze developments in the hotel industry from the perspective of Hyatt Hotels. Design/methodology/approach – states that the company’s main competitors, Marriott and Hilton, have expanded both at home and abroad since the 1980s, while Hyatt remained largely static. Notes that Hyatt is now engaged in a substantial building programme and discusses its differentiation of four main brands among its hotels. Discusses the role of Tom Pritzker and his cousin Nick in running the hotel business and outlines Tom’s interests in archaeology, in particular in an eleventh century kingdom in the Himalayas that provided the foundations for Tibetan Buddhism. Describes the development of the family business over four generations and the extent of the Pritzker holdings across a range of industries, largely built up by Tom’s father, Jay. Explains that following Jay’s death, the Pritzker heirs agreed a new governing structure for the Pritzker Organization that required more transparency and accountability to family shareholders. Notes that a plan agreed in 2001 gives Tom Pritzker until 2011 to distribute the organization’s assets among the heirs. Comments that this may run counter to Jay Pritzker’s belief that family members were entitled to no more than they had contributed to the family or society. Adds there is a widespread expectation in the financial community that the 2011 deadline will result in Hyatt and possibly some of the other Pritzker companies going public. Originality/value – offers some insight into the challenges of inheriting a large family business.Style:ViewpointISSN: 0738-5587Reference: 34AY173

Keywords: Family firms, Hotel and catering industry