CNMI DPL: Former Hyatt Regency Saipan property sought by David Hood of MB Capital LLC

Saipan Portopia Corporation, who owned the former Hyatt property, asked the CNMI Department of Public Lands to approve an assignment of the lease for the former Hyatt Regency Saipan property to David Hood and MB Capital LLC. 

“DPL is now in communication with the assignee selected by Portopia as DPL reviews the assignee's satisfaction of the eligibility requirements and qualifying factors discussed above. DPL has not yet confirmed whether the assignee meets the eligibility requirements and qualifying factors and has not yet approved the requested assignment,” Secretary of the Department of Public Lands Teresita Santos wrote in response to questions by Rep. Angelo Camacho and Rep. Julie Ogo in an August 15 letter.

In her letter to House lawmakers, Secretary Santos explained that Hood arrived in the CNMI in 2013 and has 35 years of business experience in the continental U.S. and Saipan developing residential and commercial projects. 

Santos explained, “He estimates that his largest company, Coldwell Solar, is valued at over $200 million. He intends to self-fund the required renovation of the hotel, estimated at approximately $30 million. He proposes to staff hotel operations by hiring a general manager with local hotel experience and by rehiring former employees of the Hyat.”

Rep. Camacho and Rep. Ogo asked Santos “If DPL or Portopia have engaged in exclusive negotiations with a single buyer, please provide a justification for this approach. Specifically, explain why other interested parties were not given the same opportunity and how this aligns with DPL's leasing mandate.”

Santos responded, “DPL is not currently in possession of the leased Premises and has no ability to lease or sublease the Premises or other parties, as the leased Premises is still under lease to Portopia. DPL's role is therefore limited to reviewing requests from Portopia to approve proposed lease actions, including possible assignment of the Lease. Unlike in the Request for Proposals process that DPL follows for properties not subject to an existing lease, DPL is not able to review competing proposals to select a preferred assignee at this time.”

KUAM News has reached out to MB Capital for comment. 

This is a developing story.