Dec. 14, 2001 - Hyatt Corp. will take over management of the Hyatt Regency Wichita on Jan. 8 if the City Council approves an agreement with the company Tuesday. 

Customers and the general public aren't likely to notice much difference. 

Hyatt has agreed to retain Gerald Barrack as general manager and anticipates making few outward changes, said Lori Armon, director of corporate public relations. 

The hotel currently is managed by Crestline Hotels & Resorts, which has a franchise agreement to operate the hotel using the Hyatt name. 

Barrack said the hotel already meets Hyatt standards. 

"To the customer and to most people, there wouldn't be a lot of change," he said. 

City officials decided to negotiate a new management contract when the council voted in September to buy out its private partners in the hotel. The city paid $2.5 million and assumed $15.7 million in debt, which will be paid off with hotel profits. 

The city negotiated with Hyatt and Crestline, the only companies able to meet the city's requirement that the hotel keep the Hyatt flag, said Ray Trail, city finance director. 

Hyatt offered the better financial deal, primarily because it does not have to pay the franchise fee, Trail said. He estimated the fee at $300,000 to $400,000 a year. 

"The hotel's been managed well," he said. "We have absolutely zero complaints about that." 

Under the proposed agreement, the city would pay Hyatt a base fee equal to 3 percent of the facility's total revenue. Trail estimated the annual fee would be about $450,000. 

In addition, Hyatt would receive 15 percent of the hotel's profits after all of the city's costs are covered. 

The agreement calls for the company to operate the hotel under the Hyatt flag for 25 years. 

Keeping the Hyatt name was the main reason the city decided to buy out its private partners, who had put their share of the hotel on the market for sale. City officials feared a company not affiliated with Hyatt would acquire the private share. 

"We want the continuity and stability of a high-quality flag," Trail said. 

The city considers the 303-room hotel, built in 1997, to be the anchor of its downtown convention district. Without a high-quality hotel, officials say it would be difficult to attract conventions that benefit hotels, restaurants and other businesses throughout the city. 

-----To see more of The Wichita Eagle, or to subscribe to the newspaper, go to http://www.wichitaeagle.com 

(c) 2001, The Wichita Eagle, Kan. Distributed by Knight Ridder/Tribune Business News.