AGENDA CAPTION:
Title
Consider approval of Resolution 2021-228R, approving a letter agreement with JDHQ Hotels LLC. granting the City’s consent to JDHQ’s creation of a new affiliated operating company under common control with the lessee and to the sublease of the Embassy Suites Hotel and Conference Center by the lessee to such affiliated operating company without any change to the terms and conditions of the existing lease and agreements with the City; authorizing the City Manager, or his designee, to execute the letter agreement; and declaring an effective date.
Body
Meeting date: November 16, 2021
Department: City Manager’s Office
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Background Information:
Atrium is going through the process to create a new public entity with 77 of their 82 current properties to move forward with an initial public offering. This will allow for private investment and create an opportunity for investors to assist in helping the company’s recovery after the COVID-19 pandemic.
The City has to consent to this action in order for it to occur. This does not affect the brand, and they will still be Embassy Suites. Similarly, it does not affect the terms of the agreement with the city, and they will still employ their workforce with pay and benefits. This action also allows them to complete the improvements they agreed to at the conference center on time rather than having to defer.
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Recommendation:
Recommend approval.