MB Capital LLC on Friday signed a franchise agreement with Asia Pacific Development and Marriott International to bring the former Hyatt Regency Saipan hotel closer to adopting the Sheraton brand.
MB Capital President David Hood and Marriott International Regional Vice President Peter Gassner signed the franchise agreement in the presence of CNMI officials and local tourism industry stakeholders.
In his remarks, Gassner said Marriott International will mobilize its resources to make the hotel successful.
“We will do what we can to support a smooth transition,” Gassner said. “The hotel will undergo renovation. Phase 1 of the property improvement plan involves the transformation of public areas. I’m confident that we can complete the Phase 1 renovation, and we can open as a Sheraton brand before the end of the year,” he added.
Hood said the “Marriott people, the Sheraton, they are passionate about this hotel. From the minute that we met they were …excited about this place, and they worked very hard behind the scenes to make this happen. I think we are in very good hands and we’re going to work with them closely. We feel very confident that they are going to be helpful in making this a success.”
Hood noted that they still have a lot of work to do to bring the hotel under the Sheraton brand and asked for the community’s patience.
He also expressed his appreciation to Gov. Arnold I. Palacios for “insisting and pushing” him to get an international brand for the hotel.
Likewise, he thanked the local community for the support. “I want to thank everybody who comes up to me on a daily basis, thanking us for making this happen. So, God bless to all of you for that. And everybody in the beginning was super supportive, I really appreciate that input from everyone. We’re going to make this happen. Patience please. We have a lot of work to do.”
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.
MB Capital wanted to reopen as a Sheraton-brand hotel, but because the final franchise agreement had yet to be finalized, the former Hyatt reopened as Marianas Beach Resort in November.
Palacios said Hyatt’s closure “was depressing news to everyone in this community. To hear an iconic brand Hyatt was pulling out of Saipan. But you know we dealt with it. We processed the depressed mode that it put us in. I’m very glad that after we processed that we knew that as one door closes another opens,” the governor added.
Addressing Hood, Palacios said: “Thank you Mr. Hood for agreeing to [the lease] conditions. I know it gave you a lot of headaches and a lot of hours to work, but at the end of the day, today we’re very happy where we’re at.”
In his remarks, Saipan Mayor Ramon “RB” Camacho said the partnership between MB Capital and Marriott International marks a “significant step forward in strengthening [the] tourism industry, creating jobs, and enhancing the economic landscape of the CNMI.”
Camacho congratulated and thanked Hood for believing in and working with other stakeholders and members of the business community along with the government. “May the Sheraton brand thrive in the CNMI,” he added.
In a congratulatory video message, U.S. Congresswoman Kimberlyn King-Hinds said, “Just hearing the name, the Sheraton Saipan Resort — it has a sense of pride and promise to it. It marks not just a new chapter for this iconic property but a new chapter for tourism in the NMI. But more than anything, today is about hope. Hope that we can recover from the economic challenges we face. Hope that meaningful investment is still possible. Hope, that our island continues to grow as a destination ready to welcome the world.”
Lt. Gov. David M. Apatang delivered the closing remarks and led a toast to mark the signing of the Sheraton franchise agreement.
MB Capital LLC President David Hood and Asia Pacific Development, Marriot International Regional Vice President Peter Gassner sign the Sheraton franchise agreement on Friday while MB Capital general manager Gloria Cavanagh looks on.
Asia Pacific Development, Marriot International Regional Vice President Peter Gassner talks with Saipan Mayor Ramon “RB” Camacho. Also in the photo are MB Capital LLC President David Hood, Gov. Arnold I. Palacios, other officials and guests.
