Dearborn Working With Owners to Preserve Hotel

The City of Dearborn is working with the owners of the 772-room conference hotel known as the Adoba and formerly the Hyatt to ensure that the business transitions smoothly for guests and employees after the operator of the Adoba announced unexpectedly it was leaving on Friday, Oct. 31.

Mayor John B. O’Reilly, Jr. and his administration were in contact with the owner on Thursday so that the hotel can stay open for business, guests can keep their reservations and the 235 employees can remain on the job.

The owner, Royal Realities, has assured the City that it has an operator ready to take over the hotel at midnight on Friday.

“We are optimistic that this landmark hotel will continue serving guests and employing staff members,” said Mayor O’Reilly. “The hotel accommodates so many conferences and visitors to Dearborn, whose impression of our city often starts with their experience at the hotel. We have every reason to work with the owners to ensure that the hotel remains an appealing center of hospitality and commerce in our community and region.”

Royal Realities must pay delinquent personal property taxes owed to the City in order to receive a hotel license. Under City of Dearborn Code of Ordinances, a hotel license cannot be issued if personal property taxes are not paid. As of Oct. 30, about $335,000 in personal property taxes is owed to the City.

Royal Realities was in court late on Thursday petitioning for the release of insurance money held in escrow so that it could immediately pay the personal property taxes to the City.

Royal Realities and the operator of the hotel, Atmosphere Hospitality Management Services LLC, have been in litigation. The City has no role in the legal dispute between the two.

The City has constantly advocated for the success of Dearborn’s largest hotel and to be supportive of any actions that focused on that goal.

“We want to make sure it remains a landmark for Dearborn, and continues to draw in visitors and conferences from around the country,” said the Mayor.

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