Michigan's second largest hotel, once one of Southeast Michigan's top conference sites, is expected to go back up for sale soon.
The Edward Hotel and Convention Center — better known as the former Hyatt Regency-Dearborn — has sat idle for the past couple of years after being closed by the city for safety violations and frozen by the courts as a legal case against its owner continued.
The hotel and two other properties owned by Xiao Hua "Edward" Gong in Chicago were frozen by the U.S. District Court for the District of Columbia in October 2018, at the request of the Ontario Superior Court of Justice.
Gong, who lives in Toronto, is facing charges in Canada, including fraud and money laundering, in connection with the sale of worthless stock certificates from 2012 to 2017. He has denied the charges.
But a recent agreement between Gong and the Canadian authorities could mean a new owner for the 772-room hotel, said his Michigan attorney Odey Meroueh, a partner at Meroueh & Hallman LLP, when contacted by Crain's Tuesday.
"It is my understanding Mr. Gong has resolved his case with the Canadian authorities, and as part of that, he'll be forfeiting the Dearborn hotel," said Meroueh, who with his partner Zachary Hallman serves as general counsel for Gong in matters related to The Edward Hotel.
He declined to comment on whether the forfeiture of two Chicago properties were part of Gong's agreement with the Canadian courts.
"There's a treaty between the governments of the two countries that requires the Canadian government to go through U.S. District Court to effect these types of forfeitures, and they are going through that process," Meroueh said.
The U.S. Marshals Service, which is charged with selling forfeited properties for the U.S. government, has already taken control of the Dearborn hotel, he said.
There has been significant interest in The Edward from potential buyers with ideas of reopening it as a hotel and conference site or converting it into condos, said Meroueh, a licensed real estate broker who had been discussing the potential sale with Gong prior to the resolution reached with the Canadian government.
"The building is a landmark. It's in much better shape than the public would assume, and any potential buyer will be purchasing a gem with extremely solid bones and a lot to work with."
Last year, Meroueh said his client had made significant restorations to the fire safety, electrical, plumbing and water systems, along with other updates since acquiring it in January 2016.
The hotel was in talks with the city of Dearborn about reopening within months, he said at that time.
But the city said there had not been enough progress made to reopen the hotel early last year.
"For those of us who once enjoyed the many benefits of this iconic building, it's been difficult and frustrating to watch its decline over the past few years. So this news is welcoming," said Mary Laundroche, director, department of public information for the city of Dearborn, in an email.
"Although the city's role is limited we will continue to meet with groups interested in reinvesting in this property with the hopes of assisting one with the right idea, the financial backing, and the experience necessary to see this property become a valuable asset to this community once more."
Crain's Senior Reporter Kirk Pinho contributed to this report.
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Former Dearborn Hyatt hotel expected to go up for sale soon - Crain's Detroit Business
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