Chicago-based Hyatt Hotels, owned by the Pritzker developer family, will continue to manage the 56-acre property after the sale unless the new owners buy out the remaining 12 years of Hyatt's 20-year contract, hotel staffers tell GlobeSt.com on condition of anonymity.
Joint hotel owners Crico of Orlando Inc. based in Bethesda, MD and Orlando Hyatt Hotel Associates owe LaSalle Bank NA of Chicago $29.5 million, according to the foreclosure suit filed in Orange Circuit Court. Court records show the owners borrowed $25.6 million on the 20-year-old property from LaSalle in 1995. Penalties and interest brought the debt to $29.5 million.
Few in Orlando's hospitality industry knew of Hyatt Orlando's financial troubles until 9-11. After the terrorist attacks in New York and Washington, DC disrupted tourist air travel, occupancy at the hotel plummeted to under 10%, according to hotel consultants who monitor the industry weekly. The hotel had enjoyed average occupancy rates in the mid-80s and higher until 9-11.
Hyatt Orlando's 400 employees will continue to staff the hotel which operates on its regular schedule at 6375 W. Irlo Bronson Memorial Highway, Kissimmee, FL.
The hotel's sale comes as Gov. Jeb Bush signed two bills Thursday that give Osceola County's 125 hotel and motel operators until July 1 to pay country property taxes due April 1. About 21 hotel operators have missed the deadline, according to Osceola Tax Collector Patsy Heffner.
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