New GM at Hyatt Saipan property shares latest news

BY MAUREEN N. MARATITA
Journal Staff

The incoming general manager for MB Capital Corp.’s hotel in Garapan is elated at the prospect of upgrading the Hyatt Regency Guam property.

Gloria C. Cavanagh told the Journal the team has plans and is ready to begin. “I’m excited to be part of it,” she said.

MB Capital is already conceptualizing the renovation of the hotel property in stages, she said. “The idea is one side at a time.”

The company intends to re-hire former employees, she said. “We already started hiring staff,” Cavanagh said.

As to the name for the hotel, Cavanagh said, “That’s in the works.”

Gloria C. Cavanagh, newly appointed general manager for MB Capital Corp.; was sworn in as chairwoman of the Marianas Visitors Authority on Aug. 20. Photo courtesy of the Marianas Visitors Authority

Saipan Portopia Hotel Corp., which does business as the Hyatt Regency Saipan, is the outgoing leaseholder and had asked the Department of Public Lands in July to approve assignment of the land lease contract to MB Capital. Saipan Portopia will cease activity on Aug. 31. As an assignee, MB Capital will assume the terms of the lease, which includes renovation of the property.

Cavanagh said MB Capital reassured Hitoshi Nakauchi, president and owner of Kobe Portopia Hotel Corp.; that the hotel would be in good hands, when he was briefly in Saipan for a day.

DPL is now in communication with MB Capital and its CEO, David Hood. Cavanagh said signature with DPL is imminent.

MB Capital is owned by David Hood, who is also the CEO of Coldwell Solar International Inc. in California, which does business in the Northern Mariana Islands as Coldwell Energy Inc.

Hood has been a resident of Saipan since 2013. He is known on the island for supporting renewable energy and having purchased the house of the late Larry Hillbloom.

According to Journal files, Hyatt announced in April it would close on June 30, laying off more than 100 staff.

In 2021, Hyatt’s 40-year lease renewal was approved effective Jan. 1, 2022.

Hyatt’s rental rate was about 0.5% base rent, the value of the appraised value of the properties, which is about $50 million, plus or minus an additional rent of 1% of the hotel’s business gross receipts, and a security deposit of $250,000, according to Journal files.

The Northern Mariana Islands business community was shocked when Hyatt announced its departure, as was Gov. Arnold I Palacios at the time.

Cavanagh — a long-time tourism and hospitality executive — was sworn in as chairwoman of the Marianas Visitors Authority on Aug. 20. “What we have planned will elevate Saipan and elevate the CNMI,” she said. mbj

New GM at Hyatt Saipan property shares latest news