_ John Wallis: The hotel industry is very lucky. Three new supply markets are opening today: the Russian market, the Indian market and the Chinese market. No one has a precise idea of the extent of this market. But just seeing 120 million Chinese travel during “Golden week” gives an idea of its potential size. One thing is certain: the Chinese market will dope the occupancy of hotels, the way the Japanese did in the 1970s. Before, the world’s hotel industry was highly dependent on the American market. In ten years, the Chinese market will be the new barometer. Today, the United States is not yet fully benefiting from these new sources. Obtaining a visa is often an obstacle. Tourism professionals are putting pressure on our government to lighten these formalities because our business needs more tourists.If ever this introduction returned to the agenda, the timing on the stock market would be judicious with the economic recovery and international tourism. Most hotel groups post better results than expected and upscale chains benefit more than others from the return of businessmen. With an estimated 5 billion dollars in revenues, as much as Starwood and more than the Hilton Corp, Hyatt could grow its position thanks to new investment capacities.HTR Magazine: Is China’s domestic market really the new Eldorado everyone is predicting? _ J.W: The Chinese government is doing an impressive job by accompanying the transition from communism towards an open market. In terms of development, China is the most important country for us. We have a Grand Hyatt in Hong Kong, Taipei, Beijing and Shanghai. Two Park Hyatts are being built in the last two cities. In regional towns, such as Nanjing, Ningbo or Guangzhou, we favour Hyatt Regency hotels.HTR Magazine: What is the Hyatt group’s development strategy? _ J.W: Unlike groups such as Marriott or Starwood that develop several different brands, we are concentrating on segmentation through pricing. In a single city like Tokyo, for example, we have a Park Hyatt at $500 a night, a Grand Hyatt at $300 and a Hyatt Regency at $180. In this way, our strategy is close to that of BMW or Mercedes, with different series. It took some time before this strategy, launched six years ago, took shape and began to produce results. Our goal in the mid-term is to open a Grand Hyatt in each of the world’s major cities. In the last twelve months, we opened Grand Hyatts in Tokyo, Bombay, Dubai and Sao Paulo. To have the same goal for Park Hyatt would be utopian. We see real potential only in 30 to 35 cities worldwide for this version of very upscale hotels. At this time, many developments are ongoing. In addition to Beijing and Shanghai, Park Hyatts have opened or will open in Saigon, Dubai or Buenos Aires and in Europe, in Zurich. In Paris, as for all the other upscale hotels, results have not met our hopes, but, from a global brand perspective, it is very good to have a hotel in this city. Park Hyatt can also have potential on the resort segment, as our new hotel in Goa shows. Nonetheless, this depends on the right product being in the right place, able to attract our classic and urban clientele at satisfactory room rates.HTR Magazine: Are there no regrets for abandoning negotiations for the take over of the brand Le Méridien? _ J.W: In the end, we were unable to come to a financial agreement. But one must always look toward the future and never look back. We are carefully studying new opportunities that arise. Hyatt has always been opportunistic in its development. We have leading hotels on markets where no others would venture. The Hyatt brand is thus present in Bichkek, Almaty and Bakou, where we now have two hotels, a Regency and a Park. We were the first to open hotels in the countries of the ex-Soviet Union. And we will soon be the first in Kabul with a 200-room hotel.HTR Magazine: What shape does Hyatt’s development come in? _ J.W: Hyatt favours the management of hotels. Very few properties belong to us. Our future development will include both conversions and new constructions. Nonetheless the hotel business is cyclical and we have just come out of a cycle. It is difficult for investors to predict the evolution of the next cycle. The challenge is to find capital for its development. In this day in time, the investment market is fairly dry in the United States. In large cities worldwide like London, Paris or others, the very high cost of land makes things more difficult.The Hyatt group in order of battleToday, Hyatt is still the largest private hotel group in the world with 210 hotels and more than 90,000 rooms. With headquarters in Chicago, it launched the Initiative Global Hyatt in fall 2002. The stated goals of this new structure are to improve the coordination between the American and international branches, to make the brand more consistent and quality more homogeneous worldwide, and to develop synergies during a difficult economic period. The holding unites Hyatt Corporation (proprietor of Hyatt Hotels Corporation: 122 hotels in North America) and AIC Holding Co (proprietor of Hyatt Hotels International: 88 hotels in the rest of the world) under the presidency of Doug Geoga. Ex-president and CEO of the group, he was also president of Hospitality Investment Fund in 2000, property of Pritzker, which specialises in hotel investment. His first great feat was to buy out the group US Franchise Systems: 464 hotels and 36,187 rooms under the brands Microtel Inns, Best Inns and Hawthorn Inns & Suites. The latter brand participates in the loyalty programme Hyatt Gold Passport.Another desire: to enable more effective development of his portfolio, both internally and externally. The recent unsuccessful attempt to undertake the management of the group Le Méridien tends to prove that Hyatt is not immune to opportunities that may arise.For a few months now, there has been a persistent rumour suggesting that Global Hyatt might be destined to open the company’s capital and allow the exit of shareholders in the Pritzker family, the multibillionaire owner of the group. A family that has a taste for the secret… and quarrels since Leisel Pritzker began proceedings against her father and cousins, feeling like she had been swindled in the division of the family fortune. Relying on a document from the group, the Chicago Tribune evokes a possible Initial Public Offering at the beginning of 2005. “There is no immediate plan for either Global Hyatt nor any of its subsidiaries.” Hyatt’s refutation was scathing and referred to the document as outside work, but did not, however, deny any possible discussions within the family.