Hotel Online 
News for the Hospitality Executive


Royal Realties and Hyatt Hotels, Unable to Reach Mutual Agreement, Choose
to Terminate Management Contract of Michigan's Hyatt Regency Dearborn

By Katherine Yung, Detroit Free PressMcClatchy-Tribune Regional News

May 08, 2012--The owners of the Hyatt Regency Dearborn said Monday they have no plans to close the hotel and have been in discussions to find a new company to manage the facility after Hyatt pulls out later this year.

"We are working hard to identify a four-star hotel operator that shares our commitment to the long-term success and profitability of the hotel," Royal Realties, the hotel's owner, said in a statement.

Royal also said there will be no mass layoffs of the hotel's staff, and plans are under way for a multimillion-dollar renovation that will include improvements to the hotel's 773 guest rooms, meeting rooms, public space and food and beverage outlets.

"We understand the hotel's significance to the region, and especially to the city of Dearborn," Royal said. "We are optimistic about the metro Detroit region, and we look forward to making this a successful long-term investment for all involved."

Royal is a group of international investors that acquired the marquee hotel in April 2011. The hotel is in the Town Center retail complex in Dearborn, near Ford's headquarters.

Hyatt said in a statement Monday that the two sides were not able to reach a mutually acceptable agreement so it decided to exercise its contract-termination rights.

Lori Alexander, a Hyatt spokeswoman, said Hyatt's contract at the property will end no later than Oct. 31. Hyatt said it does not foresee any disruption of service at the hotel and is working to ensure a smooth transition.

Contact Katherine Yung: 313-222-8763 or


(c)2012 the Detroit Free Press

Visit the Detroit Free Press at

Distributed by MCT Information Services

Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here

To Learn More About Your News Being Published on Hotel-Online Inquire Here

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.