Auction Set for Bethesda Hyatt

Hotel will continue operations under management contract.

The 390-room hotel in Bethesda is set to be sold at a foreclosure auction Tuesday, according to a report in the Washington Business Journal.

While building ownership may change hands, the hotel will continue operations as usual under its management contract, according to Hyatt Bethesda general manager Anthony Arbeeny.

“Hyatt has a management contract that stays true to form regardless of who purchases it,” Arbeeny told Patch. “The most important thing is [that] the brand is protected through this sale.”

The iconic hotel, located at 7400 Wisconsin Ave. near the entrance to the Bethesda Metro station, is slated to be sold by Tidewater Auctions LLC at a foreclosure auction, the Business Journal reports. According to the report, lenders claim an affiliate of the Meridian Group defaulted on a $140 million loan it took out on the property.

Bruce Lane, executive vice president and co-founder of the Meridian Group that owns the Hyatt, did not return a call for comment Monday.

Tidewater called off a foreclosure auction of the same hotel back in 2010, according to the Business Journal.

That the property will stay on under the Hyatt flag is a boon for Bethesda, said Ginanne Italiano, president of the .

The hotel is deeply involved with the community, and more than 20 years ago launched an annual Goodwill dinner for the needy that’s become a Bethesda holiday tradition.

“They’ve done so much in the community, it’s really important the Hyatt name stays on,” Italiano said.

Michael Smith August 14, 2012 at 02:50 PM
http://www.bloomberg.com/news/2012-05-03/hyatt-hotels-earnings-miss-estimates-as-expenses-increase.html Maybe Hyatt should pay off it's current properties before buying up properties it can't afford? God forbid companies ever be expected to pay their bills and be fiscally responsible. It's okay though I'm sure the government will bail them out in some way for their irresponsible business acquisitions. But really, the Meridian Group doesn't care about the DC area, they only care about making money, they're not a local company focusing on improving the local economy, they're an investment firm designed to drive the value of their buildings up and then flip them. If they get foreclosed on it just means they'll flip it and probably lose some money, they would have sold the hyatt eventually anyways.


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