‘Owner of Hyatt can’t transfer assignment of property in 5 years’

Saipan Portopia Corp., which owns Hyatt Regency Saipan, is not allowed for any transfer assignment of the hotel property within the first five years under a provision of its land lease agreement with the Department of Public Lands, according to DPL Secretary Teresita A. Santos yesterday.

Santos pointed to such restriction pursuant to Article 9 of the lease agreement in response to Sen. Paul A. Manglona’s (Ind-Rota) question if in that agreement Portopia can proceed and open tomorrow under another name, during the Senate Committee on Resources, Economic Development and Programs & Gaming meeting yesterday afternoon on DPL’s proposed new lease to Suwaso Corp. to continue the operation of Coral Ocean Resort. Santos said Portopia issued a public announcement permanently closing Hyatt or shutting down business by June 30, 2024, but then has requested if DPL can give them four to six weeks in order for them to secure the area by fencing the perimeters to prevent theft and vandalism. Santos said it was just two years ago when DPL approved the new land lease to Portopia.

She said during their meeting with Hyatt, it was shared that the company was spending close to about $200,000 per month only on electricity although often they were using just solar panels.

The secretary said in addition to that, Hyatt also was spending about $300,000 on operations monthly.

“So it was it was economically not feasible for them to continue operations,” Santos said.

Manglona asked why DPL should just remove that restriction to allow Hyatt to open under a new company under the circumstances.

Santos said they are working on some details, which she is just not privy to disclose or reveal.

“But we are working at some options and working on some details with of course our legal counsel, Attorney General,” she said.