The Courier of Montgomery County reports that the Hyatt Regency Hotel and Convention Center, which is $133 million tax-payer owned, will gain revenue of $14.7 million in 2025. However, after budgeting $12.6 million for the cost of operating the hotel, the City of Conroe can’t completely repay their debt service.
In a 4 to 1 vote, the council okayed the budget on Thursday. Councilman Howard Wood was the nay vote.
Senior Vice President with Garfield Asset Management, Walter Peseski, delivered the budget at last Wednesday’s workshop. The figures showed that the hotel would come in with a profit of around $2.5 million, which will not take care of the city’s $3.3 million owed for debt next year.
Three separate series of revenue bonds were issued by the city to fund part of the Hyatt. Information from the city shows the total debt on those liens on the hotel come to around $144 million, interest included.
Some of the profit, according to councilman Hairel, is being applied to the first two liens on the hotel. The third lien, however, will have to be covered through 2050 by the city.
According to Hairel, they “are actually supplementing the existence of the hotel.”
Peseski said he had a mission of making it so the city doesn’t have to support the hotel anymore. He commented, “We will get there as fast as we can, but the hotel is doing the best that it can.”
