Courtesy of Grand Hyatt
The city-owned Grand Hyatt hotel is the subject of a recent report by bond rating agency Moody’s Investors Service.
San Antonio made a nearly $5.8 million payment Thursday to cover the bond debt used to build the Grand Hyatt, the convention center hotel that's struggled to make its own payments during the pandemic's travel slump.
Since the middle of last year, taxpayers have ponied up a total of $10.4 million to cover bond payments for the hotel. City officials previously dipped into cash reserves to make payments last July and again in January.
The latest city payment covers more than half of the $9.1 million owed by the hotel on its latest debt installment. City officials predict the hotel will be able to meet its debt obligations again in January as the travel industry rebounds, according to a statement supplied to the Current
San Antonio agreed to guarantee more than $200 million in bonds used to finance the hotel, which opened in 2006. Council approved the deal after city staff and consultants called for a larger hotel connected to the expanded Henry B. Gonzalez Convention Center.
Citing the travel industry's woes, Moody’s Investors Service in May slashed its rating
on the Grand Hyatt's debt from stable to the lowest tier of its investment-grade category.
Then, in June, Moody’s offered a “negative outlook” for the future, noting a “potential for a prolonged impact of consumer patterns post-pandemic.”
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