The owner of Dearborn’s 33-year-old Hyatt Regency hotel has fallen on hard times, defaulting on a loan because of cash flow problems.

The owner of Dearborn's Hyatt Regency hotel will give up its control of the hotel, taking a $10.9 million loss.

According to Crain’s Detroit Business, the owner of Dearborn’s Hyatt Regency hotel — Dallas-based real estate investment trust Ashford Hospitality Trust Inc. (NYSE: AHT) — will give up its control of the hotel, taking a $10.9 million loss.

Ashford Hospitality Trust Inc. (NYSE: AHT) disclosed the change in its second-quarter earnings report. The company stopped making payments in June on its $29.1 million mortgage because the operating cash flow for the hotel did not cover the principal and interest payments, Crain’s reports.

As a result, the lender issued a notice of default.

“We have not cured the notice of default and intend to fully settle the debt via a deed-in-lieu of foreclosure or foreclosure of the hotel property,” the company stated in its 10-Q report.

The company’s analysis of the value of the property resulted in a loss of $10.9 million.

The hotel, built in 1976 at 600 Town Center Drive, is 14 stories tall and has 772 rooms.

Crain’s reports that the original lender on the property was Prudential Financial, however, the special servicer on the loan, who will take control of the property, is CW Financial, according a real estate source with knowledge of the financing of the property.

It isn’t clear what, if any, impact the loan default will have on the City of Dearborn’s desire to secure funding to construct a Convention Center near the hotel. Clearly, the hotel needs more business and a Convention Center could be one way to generate additional business for both the Hyatt and Dearborn’s Ritz-Carlton, just down the street.