Hyatt checking out of the well-known Dearborn Hyatt Regency property; Hotel to remain open

(WXYZ) - Jim Abernethy remembers when the Hyatt Regency in Dearborn was the best place to go for a night out. Abernethy is disappointed to hear that the hotel is losing the Hyatt name after a dispute between the hotel owners and the Hyatt management company. 

Jack O'Reilly, the mayor of Dearborn, tells Action News that he has been assured that the hotel will remain open. He says the Montreal based owners are currently negotiating with other franchises to manage the hotel.

Hyatt informed workers, at the hotel,  that the company will stop managing the Dearborn property within the next 3-6 months. Hyatt released this statement to the media.

"Hyatt and Royal Realities LLC, have been in active negotiations for nearly a year and unfortunately have been unable to reach a mutually acceptable agreement on the terms of a new hotel management agreement. Hyatt has therefore decided to exercise its termination rights and allow the ownership to pursue alternative options with regards to operations at the property. We are working with ownership to establish a date that ensures a smooth transition and do not foresee any disruption of service at Hyatt Regency Dearborn. We will continue to provide guests with the authentic hospitality Hyatt is known for.

We are proud to serve the Dearborn and greater Detroit region, as we have for 36 years, and thank our associates, community and partners for all their support as we move forward."

Royal Realties, LLC, the owners of the facility, released the following statement about the situation.

After nearly one year of negotiations, we were notified last week that Hyatt plans to exercise its termination rights and allow the ownership to pursue alternative options with regards to operations at the Hyatt Dearborn property.

We anticipated this outcome, and for months we have been in active discussions with other major hotel brands regarding the ongoing operation of the Dearborn property. 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.

We are investing in the future of the hotel and the region. Plans are currently underway for an all-encompassing, multi-million dollar property renovation that includes major improvements to guest rooms, meeting rooms, public space and food and beverage outlets.

We do not plan any mass layoffs of staff, and we certainly do not plan to close the hotel.

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