Mayor Ryan Announces Sale of the Regency Hotel

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.”