WICHITA, Kan. (KSNW) – The Wichita City Council voted Tuesday to put the Hyatt Regency Hotel up for sale. The council approved that proposal request unanimously.
In 2001 the city paid $22.5 million for the hotel, but it continues to bring in strong revenue, still the city plans to officially change ownership of the hotel.
The hotel features 303 guest rooms with river or city views, a 500 space covered parking garage, heated indoor pool and two indoor whirlpools and access to the expanded river walk.
KSN learned the hotel brings in several different revenues that the city and other jurisdictions have a share in.
Some of those estimated amounts since 2001 include:
- $5 million in guest taxes
- $8 million in property taxes
- $12 million in sales taxes
- $600,000 in rent payments for meeting rooms
- $650,000 in profit-sharing payments
The city will be casting a wide net to get interested buyers. “We’ll be sending this out to the brokerage community as well as development community for both locally, regionally,” said Scot Rigby, assistant city manager, “as well as nationally.”
Officials will consider several factors including the price they could get and the potential buyer’s experience with hotels. The city will also contract with an outside group to evaluate each bidder. There are some strings attached that could make the sale more challenging, particularly the continuing contract for the Hyatt Hotel Corporation to maintain the hotel through 2026, and any buyer would need to take on that contract.
“Anytime a hotel goes to market that is encumbered in some way, it’s a challenge to be able to sell the hotel,” said local hotelier, Jim Korroch at the city council meeting Tuesday morning. However, even with the stipulation, Korroch believes the city will be able to get a good price. “I think there are several brokers and interested parties throughout the nation that will look very hard at this hotel.”