By SHERRI KOLADE
DEARBORN — The Hyatt Regency Dearborn Hotel has plans to leave Dearborn after a disagreement on a management contract between the hotel’s new owners, Royal Realties, LLC, and the hotel chain.
It is unclear what the next step is for the nearly 40-year-old hotel, but published reports state the 14-story, 772-room hotel will be placed under new management.
A Hyatt Public Relations spokesperson did not return calls by press time. The Hyatt is expected to leave the hotel in Dearborn in about three months, according to published reports.
According to a statement released by the hotel owners on WDIV Channel 4:
“Hyatt has decided to exercise its termination rights and allow the ownership to pursue alternative options to operate the property. We are working to establish a date that ensures a smooth transition.”
Mayor John O’Reilly Jr. said during a Dearborn Exchange Club luncheon May 8 that the new owners were one of 22 bidders for the hotel when it went into bankruptcy in 2009 under previous owners. Royal Realities, a Michigan-based company with offices in Montreal, won the bid and purchased the hotel for $10 million in 2011 even though the original sale price was $20 million, O’Reilly said.
“They did all kinds of tricks and finally when the broker was going to terminate the purchase agreement they sued the broker,” O’Reilly said. “It was not really a case that had much merit but it was enough so the court would enjoin them from terminating the agreement.”
O’Reilly said he is disappointed that the Hyatt is leaving.
“It is really tragic,” O’Reilly said. “I am very disappointed with the outcome.”
O’Reilly said because the city does not have any power over a private enterprise, he can only state his opinion. By the time of publication O’Reilly has made contact with one of the original bidders for the hotel to see if they can buy back the hotel from the new owners, he said.
“If that doesn’t happen (I am) not very optimistic,” he said.
(Sherri Kolade can be reached at [email protected])