Conroe Unveils $147M Hyatt Regency Report to Public on Thursday
Conroe is set to release a pivotal report regarding the $147 million Hyatt Regency project, which will be made public on Thursday. This report was compiled by the renowned real estate firm, Jones Lang LaSalle, and is eagerly awaited by stakeholders who invested in the project. The Conroe City Council is scheduled to convene at 9:30 a.m. on Thursday for the release.
Transparency and Insights from Council Members
Councilwoman Marsha Porter emphasized the importance of transparency during the council’s recent special meeting. She asserted that it is essential for stakeholders to understand the findings from behind closed doors. “This information will shed light on the project from an objective standpoint,” she stated.
In agreement, Councilman Howard Wood remarked that the report would allow citizens to access unbiased information. He referred to it as an opportunity to hear the truth from a third party, rather than from individuals with possible motives.
Details About the Hyatt Regency
The Hyatt Regency and convention center, inaugurated in May 2023, is notable for being the largest taxpayer-funded development in Conroe’s history. Key features of the facility include:
- A sprawling over 380,000 square feet of space
- 250 full-service hotel rooms
- Multiple large conference and event rooms
Despite its magnitude and potential, the project has faced challenges stemming from economic projections and cost overruns. Taxpayer bailouts have also been required, raising concerns about the financial viability of the venture.
Credit Rating Concerns
The financial health of the project has come into question, highlighted by recent actions from S&P Global Ratings. In February 2024, the agency downgraded the credit ratings for both first-lien and second-lien hotel revenue bonds. Key rating changes include:
- First lien rating downgraded to BB-
- Second lien rating downgraded to CCC+
Following further analysis in May, S&P Global adjusted the first lien rating down to B from BB-. In June, while the first lien rating remained stable at B, the second-lien rating dropped from CCC+ to CCC.
Lastly, on October 14, S&P Global reaffirmed its assessment of the first lien while lowering the second lien rating from CCC to CCC-. These ratings are critical as they reflect the city’s ability to repay its debts related to the Hyatt Regency project.
