With one week to go before the Dearborn hotel would be forced to close its doors and lay off several hundred employees, Mayor Jack O'Reilly said Tuesday that another deal is in the works for the Hyatt Regency.
"The owners claim that they now have an operator, but they’re not disclosing who at this point," O'Reilly said at a meeting with Dearborn City Council Tuesday evening.
The hotel, which is owned by the international company Royal Realties LLC, was left without a management company in May when Hyatt pulled out of the 772-room property.
The termination date of their deal is set for Oct. 31.
Carlson Rezidor Hotel Group announced in September that they would transition the hotel to a Radisson property Nov. 1. However, that deal fell through in October—which O'Reilly said was due to disagreements between the hotel operator and Royal Realties over the investment that would be made in updating the property.
“The Radisson was going to come in for a $5 million investment,” O'Reilly disclosed.
Carlson Rezidor would not comment to media about the deal-gone-sour; Charles Taylor, representative for Royal Realties, told Crain's Business Detroit that "the two parties didn't completely agree with each other," but declined to elaborate.
O'Reilly added that to his knowledge, several other offers had been made to purchase the property, but none had come to fruition.
According to O'Reilly, Royal Realties is in Dearborn this week.