By Bryan Manabat
Saipan-- The former Hyatt Regency Saipan, which shut down on June 30, has reemerged in the Garapan landscape as a Sheraton brand, bearing optimism for the CNMI's otherwise sluggish tourism industry.
"It was a difficult decision between Hilton and the Sheraton brand name, but I feel that the Sheraton brand fits the CNMI hotel more," Don Wood, president of MB Capital LLC, said during today's unveiling ceremony.
"It was a tough decision. They were both top-notch. We could have made the decision a month ago, but we just kept looking at all the specifics," he added.
Wood said Sheraton is tentatively scheduled to open on Nov. 25, Thanksgiving Day. "We are excited, and I'm inviting everyone to our opening," he added.
Saipan Portopia Corp., which operated Saipan Hyatt Regency, ceased operations after 43 years in business, citing global shifts and challenges impacting Saipan's tourism sector.
Before it shut down, Hyatt had 38 years left in its lease contract with the Department of Public Land.
Saipan Portopia turned over the lease to MB Capital after negotiating for two months. The land department approved the lease transfer on Aug. 31.
The hotel's operation under the Sheraton brand "remains subject to MB Capital and Marriot signing binding definitive contracts and MB Capital satisfying the conditions for rebranding," the new hotel operator said in a statement.
Wood is optimistic that the tourism market "will improve eventually," citing the industry's "cyclical" nature.
"MB Capital is a value investor, and we don’t look for projects when the market is high and everything is booming," he said. "We look at undervalued properties that might be struggling and we try to figure out what we can do differently."
Gov. Arnold Palacios, Lt. Gov. David Apatang led the CNMI officials who joined Wood and MB Capital general manager Gloria Cavanagh at the unveiling event.
"This is a new day and we have a new group of people that we have confidence in making this thing work for this community," Palacios said.
The governor noted that MB Capital has retained Hyatt's former core employees.
“MB Capital has a good team that is committed to the CNMI. These folks are from the commonwealth," Palacios said.
"We believe that whatever it's going to take, they will give it their best, and the government will be with them throughout, whether it's helping with marketing or helping with incentives," he added.
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