Hyatt Grateful to NMI, Pledges to Help Revive Japan Tourism Market | New

SAIPAN Portopia Hotel Corp., owner of Hyatt Regency Saipan, is very happy and grateful to the CNMI government for granting the company another 40 year land lease.

Governor Ralph DLG Torres and Lieutenant Governor Arnold I. Palacios joined Department of Public Lands Secretary Sixto K. Igisomar and Hyatt Regency Saipan General Manager Nick Nishikawa in a signing ceremony at the restaurant Hyatt’s Miyako Friday at 10 a.m.

Hyatt’s current ground lease agreement expires on December 31, 2021.

Also present at the ceremony were President Edmund S. Villagomez, President of the Senate Jude U. Hofschneider, other legislators and administrative officials, President of the NMI Hotels Association Gloria Cavanagh, Executive Director of the House of Saipan Lee Tenorio and Chairman of the Council of Economic Advisers to Governor Jerry Tan.

Nishikawa said: “I am very happy. My staff are very happy. He said he has been in the hospitality industry for almost 40 years and that “this is the happiest time of all”.

He then read the message from Saipan Portopia Chairman Hitoshi Nakauchi, who is in Japan:

“I am very happy to hear that the land lease has been extended. 30 years ago, Saipan Portopia Hotel Corp. took over ownership of the Hyatt Regency Saipan. Beautiful island.”

Sadly, Nakauchi said, the Covid-19 pandemic has caused so much suffering and a massive impact on the tourism industry.

But now, he said, “we see the world reopening and connecting again. The return to the pre-Covid days will be slow and difficult. I would like to offer any help that will help the people of the island.”

He added, “I look forward to the day when the flights between Tokyo and Saipan return. I want to encourage people here in Japan to visit Saipan. I hope that soon they can meet the wonderful people on the island and discover all the natural beauty, whether they come for business or for pleasure.

Nakauchi said he was “very grateful to all the staff at Hyatt, the DPL and Governor Torres. For 30 years, Hyatt Saipan has been strong, thanks to the support of our dedicated staff, the government and all members of the community, I look forward to another 40 years.

The governor said the signing ceremony was “very sentimental for all of us” as even hotel employees reminded him of how dedicated Hyatt is to the people of CNMI and to the many opportunities the hotel has brought to the Commonwealth. .

He thanked Hyatt and his staff for constantly meeting with his administration. “Ultimately,” he added, “collaboration between government and the private sector is good for all of us. “

Speaking to Nakauchi, Nishikawa and the staff at Hyatt, the Governor said, “It really is a blessing to us here that you want to keep investing and trusting the people at CNMI.”

For his part, Lt. Gov. Palacios, the author of Public Law 20-84 that allowed the DPL to grant Hyatt another 40-year ground lease, said: “It’s a good day. , a monumental day for the Commonwealth.

“We did it,” he added, referring to PL 20-84. “It was also controversial, as it should be, as we were dealing with public land” owned collectively by people of Northern Mariana ancestry.

He noted that before the law was passed, “we had a very comprehensive process that included public hearings and at the end of all our efforts we were able to do that, and I thank my colleagues at the time.” .

Palacios was then president of the Senate.

“And now we are here today after all that has been done for the good of the people of the CNMI,” he said on Friday.

The agreement

DPL Secretary Sixto K. Igisomar said that in addition to rent and other obligations, Hyatt agreed to provide a public benefit of $ 1.5 million to the Commonwealth, broken down as follows:

• $ 500,000 for family infrastructure.

• $ 500,000 for Garapan revitalization projects.

• Scholarship fund of $ 200,000 for NMD students payable in the amount of $ 5,000 per year for 40 years.

• $ 300,000 for the promotion of traditional arts and culture.

Igisomar said Hyatt’s new lease for 4,432 hectares of public land will begin on January 1, 2022 for 40 years with an option to extend for another 15 years.

The fee simple value of the premises during the first five years of the term is $ 54,293,500. The base rent during this five-year period is $ 271,467 per year, plus 1% of the gross revenue of the business.

Hyatt will also pay the government $ 250,000 as a security deposit, plus 5% of the total construction cost of $ 45 million.

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