Going on this week in Wichita will be a vote on their Hyatt hotel that is currently owned by the city and operated with a long term contract with Hyatt.
From the Wichita Eagle, the City Council in Wichita will consider putting the city-owned downtown Hyatt Regency on the market.
The city government has owned the hotel since 2001. Then, the council agreed to buy it to ensure that the original owner, who wasn’t meeting his profit goals, didn’t sell it to somebody who would reflag it downward from the prestigious Hyatt name.
Fifteen years ago, the city of Wichita paid about $18.3 million to buy the hotel. That was in addition to $10.6 million in city development subsidies that helped get the hotel built.
In the Omaha World Herald from March 11, 2014:
In the near future, if the Hilton doesn't start making more money, that won't be enough.
The City of Omaha's repayment schedule for the $71 million hotel and its $37 million expansion are set to jump over the next few years. This year, the debt payment will be $8.9 million. But by 2017, it will jump to $9.9 million. By 2024, the total will approach $11 million.There is no doubt we need high quality hotel space to keep and grow the events that are downtown. But it will be something to watch in Wichita how they handle their hotel ownership and the potential sale of that asset.