The agreement gives building owner Lamco, LLC, a subsidiary of Lehman Brothers Holdings, Inc. the option to purchase the ground rights at 151 W Fifth Street for $2.1 million if it completes renovations by the end of 2014. In return, the City would contribute the approximately $1.75 million in waived retroactive rent accrued between now and the project's completion.
Lamco, LLC took title to the property in 2009 after the previous owner defaulted on its loan.
The company plans to reposition the 485-room hotel and, ultimately, to sell it.
In 2011, the ground rights under the Hyatt Regency Hotel were appraised at $3.65 million. Under a lease agreement signed in 1998, Lamco, LLC would have been required to pay $5.32 million for the property.
Built in 1984, the hotel needs an upgrade to compete with other Downtown hotel projects either under construction or in the pipeline, including the 21c Museum Hotel, which opens in September; the Holiday Inn Hotel and Suites, planned for the corner of Seventh and Broadway streets; the Residence Inn, which opened in Lytle Park in April 2011; and a hotel planned for the corner of Main Street and Freedom Way at The Banks.
According to the Cincinnati USA Convention & Visitors Bureau, Downtown hotel room bookings and visitor spending has increased for seven consecutive years.
Previous reading on BC:
Downtown Hyatt could see $17M renovation (6/15/12)
