Conroe set to unveil $147M Hyatt Regency report to the public this Thursday
The city of Conroe is set to publicly unveil a significant report regarding the $147 million Hyatt Regency project. This unveiling will occur on Thursday following notifications to stakeholders who financed the initiative. The Conroe City Council will convene at 9:30 a.m. to discuss the findings of the report authored by Chicago-based firm Jones Lang LaSalle.
Importance of Transparency
During a special council meeting held earlier this week, Councilwoman Marsha Porter emphasized the necessity of transparency regarding the hotel project. She stated, “For transparency, they need to hear what we heard behind closed doors.” This underscores the council’s commitment to communicating the truth to the citizens, as mentioned by Councilman Howard Wood, who noted that the report would provide an unbiased perspective from a third-party source.
Project Overview
The Hyatt Regency and convention center, which commenced operations in May 2023, represents the largest taxpayer-funded economic development project in Conroe. This extensive facility spans over 380,000 square feet and features:
- 250 full-service hotel rooms
- Multiple large conference and event spaces
Challenges Faced
Despite its grandeur, the project has faced considerable challenges. Economic projections were missed, leading to cost overruns and significant taxpayer bailouts. As a result, S&P Global Ratings downgraded the city’s credit ratings related to the hotel revenue bonds substantially throughout the year.
Credit Rating Implications
In February 2024, the ratings agency reduced the city’s first-lien and second-lien hotel revenue bonds to BB- and CCC+, respectively. By May, further downgrades occurred, lowering the first lien’s rating to B. The latest updates indicate that while the rating on the corporation’s first lien has remained at B, the second lien’s rating declined from CCC to CCC- in October.
The upcoming report from Jones Lang LaSalle is anticipated to shed light on these financial difficulties, ensuring that stakeholders and the public can better understand the current status of the hotel project and its impact on the community.
