Oct. 31–The Adoba Hotel, formerly the Hyatt Regency Dearborn, is expected to come under new management and remain open.

Royal Realities, the owners of the 772-room hotel and conference center, faced closing the facility this weekend because it was behind in property taxes and unable to receive a hotel license.

But the City of Dearborn said it was assured that another management company, Lodging Host, would take over running the complex, the bill would be paid, and the hotel will continue to operate.

“We are optimistic that this landmark hotel will continue serving guests and employing staff members,” Dearborn Mayor O’Reilly said in prepared remarks. “The hotel accommodates so many conferences and visitors to Dearborn, whose impression of our city often starts with their experience at the hotel.”

He said the city is working with Royal Realities and seeking a smooth transition to new ownership so guests could keep their reservations and the 235 employees would not lose their jobs.

Royal Realities and the hotel’s current operator, Atmosphere Hospitality Management Services, have been locked in litigation.

An attorney for Atmosphere said the legal standoff led to the tax delinquency.

For now, he said, it appears that an agreement has been reached to free up some funds so the taxes can be paid and a new management team can take over, but the legal disputes are ongoing.

The hotel, which was built in the 1970s in a postmodern architectural style designed by Charles Luckman, became Adoba Hotel in 2012. It has been slated to become a Raddison, but the deal was cancelled.

According to the city, the hotel was behind on it’s property taxes, owing about $335,000 to the city, and under the city ordinances, could not be issued a hotel license until the debt was paid.

“We have every reason to work with the owners to ensure that the hotel remains an appealing center of hospitality and commerce in our community and region,” O’Reilly said. “We want to make sure it remains a landmark for Dearborn and continues to draw in visitors and conferences from around the country.”

Adoba Hotel

Address: 600 Town Center Dr., Dearborn

Previous name: Hyatt Regency Dearborn

Rooms: 772

Employees: 235

Taxes owed: $335,000