Marianas Variety

Last updateFri, 23 Aug 2019 12am

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    Thursday, August 22, 2019-1:21:04A.M.

     

     

     

     

     

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Still no new land lease agreements for Fiesta Resort, Hyatt Regency

FIESTA Resort & Spa and Hyatt Regency Saipan want to upgrade their facilities, but their land lease agreements with the CNMI government remain uncertain, Hotel Association of Northern Mariana Islands chair Gloria Cavanagh said.

Both hotels are “reaching a very critical point,” she added. “They need to decide whether or not they can stay or they’re going to move on.”

She said any investor cannot just buy the Hyatt facility and be the new Hyatt. “It doesn’t work that way because Saipan Portopia Hotel Corp. owns the Hyatt here. If somebody else comes in then they will have to renegotiate with Hyatt or with any other flagship hotel…. And it’s very difficult,” she said, adding that the Hyatt is the only international hotel brand on Saipan.

She said HANMI is hoping that the Department of Public Lands and the Office of the Attorney General can allow Fiesta Resort and Hyatt to reinvest into their properties.

Fiesta Resort’s lease ends in June 2021 while Hyatt’s ends in Dec. 2021.

In Dec. 2018, then-acting Gov. Victor B. Hocog signed Public Law 20-84 to extend certain public land lease terms from 40 years to 55 years. The law is only applicable to public land leases that involve hotels and golf courses. It allows DPL to discuss an extension of the current land lease agreements with the Hyatt and Fiesta Resort under new terms and conditions without going through a Request for Proposals process.

In March 2019, DPL said negotiations with the two hotels were ongoing.

“We hope the negotiation will conclude soon and they can reach a deal,” Cavanagh said.