Radisson deal with Hyatt falls through

Times-Herald Newspapers

DEARBORN — A new management deal to change the Hyatt Regency Dearborn Hotel to the Radisson Hotel & Conference Center by Nov. 1 will no longer take place, according to a statement released by a hotel group.

“Carlson Rezidor Hotel Group and Royal Realties, LLC, have agreed to terminate the previously announced management agreement with the hotel currently known as the Hyatt Regency Dearborn,” Carlson Rezidor said in a statement.

The Carlson Rezidor Hotel Group, a hotel company launched earlier this year, has more than 1,300 hotels in 81 countries. The hotel group, based in Minneapolis and Brussels, Belgium, planned to begin a multimillion-dollar renovation to the 14-story, 62,000-square-foot, 772-room hotel when the Hyatt Regency’s contract expires on Oct. 31.

The hotel owner, Royal Realties, LLC, is currently in talks with other potential hotel operators. The Carlson Rezidor Hotel Group did not return phone calls by press time.

The group backed out of the deal with Royal Realties, LLC., shortly after making the announcement on the long-term management agreement Sept. 25 on its website.

Charles Taylor, owners’ representative for Royal Realties, did not return calls by press time.

The hotel is currently operated by Hyatt Hotels Corp., and the operators told the hotel’s 322 employees in late August they would lay the employees off by the end of October when the management agreement expired.

Hyatt Regency Dearborn General Manager Peter McMahon said in a statement that he hopes the current owners will continue to operate the full-service hotel.

“Should there be a lapse in management of the hotel, Hyatt will work with the hotel’s owners to offer assistance to employees,” McMahon said in the statement.

McMahon said in May a disagreement occurred on a contract between the management and the hotel’s new owners, Royal Realties, LLC, which prompted the Hyatt Regency to terminate its management.

(Sherri Kolade can be reached at skolade@bewickpublications.com.)