DeLeon Guerrero says Hyatt’s closure very concerning

Senate President Edith E. DeLeon Guerrero (D-Saipan) said yesterday that Hyatt Regency Saipan’s closure announcement is very concerning, while House of Representatives Speaker Edmund S. Villagomez (Ind-Saipan) stated this will definitely impact CNMI’s economy.

In response to Saipan Tribune’s request for comment about Hyatt’s announcement, DeLeon Guerrero said the Hyatt brand name adds value to the CNMI as a destination.

DeLeon Guerrero said with the closure announcement it certainly does have a negative effect on the CNMI destination and economy that is reliant on tourism revenue.

The Senate president said corresponding diminishing revenues will be felt on the Gross Revenue Tax, payroll taxes, Hotel Occupancy Tax revenue, and programs and services that share in these tourism revenues.

She noted that 146 Hyatt employees will be affected.

Villagomez, on the other hand, said a part of him was not surprised given how the CNMI’s economy has been these past few years.

“I just didn’t expect it to be this soon,” Villagomez said.

Kobe Portopia Hotel Corp., which owns the Hyatt Regency Saipan, signed with the Department of Public Lands a new 40-year land lease on Oct. 8, 2021. Kobe Portopia reportedly set aside $45 million for the construction and renovation of Hyatt.

Villagomez said he was surprised because Hyatt seemed very optimistic and confident when the land lease was approved.

“The Hyatt brand has been a part of our economic history for as long as I can remember,” Villagomez pointed out.

Hyatt made the shocking news on Monday that it will permanently cease operations on June 30, 2024.

Edith E. DeLeon Guerrero