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MPLA approves the lease transfer for Grand Hotel
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Posted on Jan 05 2005
The Marianas Public Lands Authority approved yesterday the transfer of the Saipan Grand Hotel lease to Asia Pacific Hotels Inc., which will be taking over the property from Micro Pacific Development Inc.
The approval by the MPLA board of directors paved the way for the hotel’s sale, which was confirmed yesterday by both parties involved in the transaction.
MPLA, however, attached several conditions to its consent.
On top of the list of conditions was that Micro Pacific must settle its $343,440 outstanding account with MPLA. The company did so immediately after receiving the conditional approval yesterday afternoon.
The MPLA board also instructed management to ensure the parties’ compliance with the master lease and corresponding amendments; conduct a background of Asia Pacific Hotel and its principals, as well as its licenses to conduct business in the CNMI; and for the comptroller to ascertain financial issues relating to the purchase.
The government of the then Trust Territory of the Pacific Islands signed the original lease agreement for the property on June 16, 1975. The lease was subsequently assigned to Micro Pacific Development Inc., doing business as Saipan Grand Hotel, on Dec. 2, 1975.
Article 10 of the lease agreement states that “the lessee shall not sublease, assign, or transfer all or any part of its interest in the lease agreement without the express written approval of the [MPLA] board.
An affiliate of Tan Holdings Corporation, Asia Pacific Hotels Inc. also owns and operates Dai-Ichi Hotel Saipan Beach, Guam Dai-Ichi Hotel, and Century Hotel on Saipan.
Saipan Grand Hotel has 224 rooms and is located in Susupe. The hotel’s facilities include two swimming pools, several restaurants, a dance club, a wedding chapel, tennis courts, a ballroom, and several meeting rooms.
