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Dearborn Hyatt Sold for $12.5 Million

Dearborn's Hyatt Hotel has a new owner.

In other hotel news in Dearborn, The Detroit News is reporting that the 772-room Hyatt Regency, whose owners defaulted on a $32.5 million loan last year, is under contract to be sold for $12.5 million and will remain a Hyatt, according to the Chicago broker behind the deal.

We wrote about the hotel being sold back in April but a price tag or the name of the new owner had not been disclosed.

We still don’t know the name of the new owner but the good news is that the Hyatt is going into the hands of a hotel investment company.

Dallas-based Ashford bought the 34-year-old hotel for $40 million in 2007 but later defaulted on the loan.

The deal should officially close by end of December.

The contract is for $20 million but the final price will drop to $12.5 million because of a “structural issue that will be addressed,” The Detroit News Reports.

Now the question becomes whether the new hotel owners have any dollars to contribute to the construction of a convention center in Dearborn . . .

This entry was posted on Thursday, August 26th, 2010 at 6:57 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  • Joe

    Let’s all hope they do not have the money for a convention center. It is the only thing that can save the City from this administration!

  • Hakim

    JOE U ARE SO RIGHT. Let the big boy take care of his pipe dream with his co-hort , the freeloader from the Chamber, Jennifer Gehrig, they always want something done, however, at someone elses expense.

  • vincent

    I HOPE THE NEW OWNERS DO WELL, AS FAR AS A CONVENTION CENTER, LET THE CITY FATHERS AND THE CHAMBER DO IT, SINCE THEY SEEM TO WANT IT SO BAD.

  • Mary Anne Wilkinson

    If the city fathers do it – with or without the Chamber, we the taxpayers will once again be stuck with the tab. With all of the facilities that Ford has, I doubt that a Convention Center would get much use. (How many other groups rent space in the Ford Community arts building in Dearborn? Does it pay it’s own way?) Forget about it!!! Do we really need another drain on our city dollars?

  • Ken

    Forget the cenvention center. I just hope that the new owners have enough capital to update the hotel. My empoyer held a meeting there last month with over 30 people staying for 4 nights. There were numerous complaints reparding the condition of the carpet, bedding, etc…

  • tdogg

    IMHO conventions are going the way of long play records – forgotten ideas in the face of new technology and economic reality. I know my employer really likes webinars, and doesn’t think much of putting me on a plane when Skype is sitting right there. It is going to get harder and harder to justify sending people to meetings when the meeting can come to them.

    Other than pure business meetings, there are the “shows.” Look at the effort that goes into keeping the Rock Financial facility booked – do we really want to try and compete for that business?

    And if they ever do get around to making Cobo a viable meeting center – amid the Casino hotels and downtown sports – how would the Dearborn Convention Center ever get a second glance?

    I wouldn’t stay awake worrying about whether the new owners are going to be the catalyst for a convention center – I think Ken’s concerns are a much more immediate issue. I heard the same things from guests there for the Superbowl. Let’s just hope this place doesn’t turn into Dearborn’s own version of Detroit’s St. Regis Hotel.

  • SameAsitEverwas

    Hey doesn’t every bad mayor need his own money pit to carry on his legacy after he is gone?