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Independent review finds Hyatt Regency Conroe needs ongoing cash injections; council approves 2026 fee cut
Summary
Consultants told Conroe officials that while the Hyatt Regency generates operating cash, the hotel—flow-of-funds ("waterfall") leaves the city low in the payment order and likely to require recurring cash injections; council approved a one-year reduction in Hyattmanagement fee from 5% to 4% to save about $145,000 in 2026.
An independent hotel consultant presented long-term projections to the Conroe City Council and its related boards on Jan. 22, showing the Hyatt Regency Conroe produces operating cash but still falls short in the legally defined flow-of-funds that pay management, asset managers and layered bondholders.
The consultant told the boards the hotel's RevPAR (revenue per available room) and average daily rate lag local competitors, and that his updated waterfall analysis shows the second-lien bond will require injections until about 2032 while the third-lien bond likely needs supplemental funding for the foreseeable projection period. He…
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