By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
LOCAL businessman Jose C. Ayuyu is urging CNMI leaders to make the right decision regarding the future of the property currently occupied by MP Capital LLC’s Marianas Beach Resort in Garapan.
After seeing the Department of Public Lands’ notices of default and violation of the lease agreement on the 4,432-hectare property, Ayuyu, one of the CNMI’s most successful local businessmen, said he couldn’t help but feel frustrated.
“Somebody has to say something about this. This is not right,” Ayuyu, the owner of McDonald’s Restaurants in Guam and Saipan, said in an interview last week.
The property, formerly occupied by Hyatt Regency Saipan, is supposed to be one of the CNMI’s best assets, Ayuyu said. Yet over the years, it has been a problem when certain investors were awarded the lease only to later realize it had been “given to people who are not financially capable.”
“It seems to me that the CNMI is so desperate to ‘come up with some money’ rather than take the time to find a financially capable investor,” he said. “In dealing with public land, the Commonwealth has really reached a bad point.”
Ayuyu added, “It is getting really frustrating. I know we can do better, but honestly, this is getting crazy. The land lease deal on the Hyatt property is an example of bad decision-making. We could have done better.”
Last year, another investor expressed interest in taking over the lease agreement between DPL and Saipan Portopia, the company that operated Hyatt Regency Saipan. In August 2024, M&E Enterprises Inc. Saipan submitted a proposal to DPL to acquire the property. The proposal promised $34 million for the first round of hotel renovations and the purchase of new equipment, with a commitment to retain the Hyatt brand.
Ayuyu is urging the administration and the Legislature to act on the notices of default and violation and determine whether the government can reclaim the property.
“Let’s not play around,” he said. “The government should stop dealing with people who don’t have the capability to restore the hotel to what it once was.”
He also recommended that DPL consider global hotel brands affiliated with airline companies to attract tourists. CNMI leaders, he said, should exercise their authority and explore creative ways to ensure multi-million-dollar assets like the former Hyatt property, as well as other underutilized public lands, begin generating revenue for the government and the people.
“I am just concerned about our people. It’s really sad. We keep making the same mistakes, and now we are financially in bad shape,” Ayuyu said.
Variety was unable to get a comment from MP Capital LLC.
