By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
MB Capital Holdings LLC on Thursday paid the Department of Public Lands nearly $220,000 in arrears, interest, and business gross revenue tax to retain the leasehold on the 4.4-hectare public land occupied by Marianas Beach Resort in Garapan.
In an interview Friday, DPL Secretary Sixto Igisomar said MB Capital Holdings LLC President David Hood paid $197,951 in annual rent, inclusive of interest and penalties that had accumulated since July. Hood also paid the Commonwealth more than $21,600 in business gross revenue tax.
According to other Capital Hill sources, these payments preserved MB Capital Holdings LLC’s $250,000 security deposit, part of the lease agreement with DPL for the property formerly occupied by Hyatt Regency Saipan.
The payments came more than two months after DPL issued notices of default and violations on Aug. 18, 2025.
Following the payments, Igisomar issued the following statement:
“Following the issuance of a Notice of Violation … to MB Capital Holdings LLC for non-payment of rent and failure to submit required documentation within the compliance period, the Department of Public Lands subsequently received communication from the lessee requesting an opportunity to address the cited deficiencies.
“While there were external calls to move beyond the existing default and proceed toward lease termination, DPL maintained its fiduciary responsibility to uphold due process and provide the lessee a reasonable opportunity to cure in accordance with regulatory and contractual procedures.
“Despite public attention surrounding the matter, DPL emphasized fairness, transparency, and investor engagement, ensuring that enforcement actions remain consistent with DPL’s trust obligations under Article XI of the CNMI Constitution and Public Law 15-2.
“Upon meeting with the lessee, MB Capital paid in full all outstanding arrears immediately on the next business day and is now current on all rental obligations up to the next anniversary date. The lessee has also assured DPL that all remaining compliance documents and project-progress materials will be submitted on an agreed schedule.
“DPL will review the forthcoming submissions to determine whether each item satisfactorily addresses the respective articles cited in the [Notice of Violation]. The Department’s next steps will be guided by the findings of that review and in accordance with applicable regulations, ensuring that all parties remain in compliance with their contractual obligations.”
In March 2025, MB Capital signed a franchise agreement with Asia Pacific Development and Marriott International to transition the former Hyatt Regency Saipan toward the Sheraton brand.
At the time, Hood said there was still a lot of work to do to bring the hotel under the Sheraton brand and asked for the community’s patience.
In September 2024, Saipan Portopia Corporation, which was doing business as Hyatt Regency Saipan, assigned its remaining 38-year land lease with the Department of Public Lands to MB Capital LLC.
Citing “global shifts and continued challenges impacting Saipan and its tourism sector,” the Japanese-owned Saipan Portopia shut down the Hyatt on June 30, 2024.
Since the pandemic restrictions all but shut down the local tourism industry in 2020, visitor arrivals to the CNMI have yet to recover.
In September 2025, MVA said its “overall projection for 2026, based on historical data, looks worse than 2025.”
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
