Binghamton, N.Y. — Mayor Matt Ryan today
was joined by community leaders to announce that the City has sold
the Regency Hotel to Binghamton Hospitality & Conference Center, LLC
for $3.6 million.
The new ownership team is headed by Alfred Weissman, whose real
estate company currently is redeveloping 20 Hawley Street for
high-end student housing. The team has renamed the Regency the
Binghamton Riverwalk Hotel & Conference Center.
“Mr. Weissman has a track record of turning liabilities into gems,
and I’m confident he’ll fulfill the potential that the hotel holds
for Binghamton and the surrounding area,” said Mayor Ryan. “Mr.
Weissman and his team have an inspiring vision for the hotel, and
they’ve already begun impressive renovations to the ballroom and
exterior.”
Binghamton Hospitality & Conference Center, LLC and the City closed
on the sale of the hotel this morning, following the conclusion of a
due diligence period during which the owners started improvements to
the ballroom, driveway and other areas.
“Binghamton is a special place, and we're very pleased to invest
here,” said Weissman. “We're going to make the Binghamton Riverwalk
Hotel and Conference Center the region’s premier destination for
visitors, conferences, conventions and celebrations. And through all
of this work, we’re creating local jobs, which are more important
than ever during today’s difficult economic times.”
The City has been working to sell the hotel ever since the original
owner defaulted on a City-backed Section 108 Loan in 2005. In
December 2007, the City agreed to sell the hotel to Nexus
Hospitality Management for $5.85 million, but that year’s credit
crunch undermined the buyer’s financing and, ultimately, the sale.
In February 2009, the City sold the hotel to NJDV Hospitality, Inc.
for $6.5 million, of which the City was to net $5.9 million. While
the investors gave the City a non-refundable check for $2.5 million
up-front, they failed to make their scheduled payment of $4.1
million, compelling the City to re-take ownership in October 2009.
“We've made the very best of a difficult situation,” said Mayor
Ryan. “By working closely with the former and current City Council
all along the way, we've put the City in the most advantageous
financial position possible while also protecting the hotel. I thank
the Council for their partnership on behalf of our community.”
