THE Department of Public Lands is pressing MB Capital LLC, the owner of Marianas Beach Resort, to comply with the terms and conditions of its lease agreement, DPL Secretary Sixto Igisomar recently told lawmakers.
It has been over a year since MB Capital LLC took over the property after Hyatt Regency Saipan left the island in June 2024.
In an informal meeting with members of the House Ways and Means Committee and Senate Fiscal Affairs Committee about two weeks ago, Igisomar said he issued a notice of default and notice of violation on Aug. 18, 2025, and was still awaiting a response from MB Capital LLC President David Hood, who was off island.
Ways and Means Committee Chair John Paul Sablan, who co-presided over the joint meeting with Senate Fiscal Affairs Chair Jude U. Hofschneider, said the DPL secretary assured them he is not taking the matter lightly and was waiting for the hotel owner to return to the island so they could address the issue.
Sablan said the possibility of the land lease being terminated “is very high.”
Variety was unable to get a comment from Hood.
On Aug. 27, 2025, Igisomar also informed Senate Vice President Corina Magofna about the notice of default and notice of violation regarding the public land previously occupied by Hyatt Regency Saipan.
Background
Saipan Portopia Corporation, which operated Hyatt Regency Saipan, shut down the hotel on June 30, 2024. Three months later, Portopia assigned its remaining 38-year lease to MB Capital LLC. On Oct. 22, 2024, MB Capital LLC unveiled Marianas Beach Resort after signing a memorandum of agreement with Starwood Asia Pacific Hotels & Resorts, an affiliate of Marriott International Inc.
In June 2025, Magofna asked the DPL secretary if MB Capital had complied with the lease agreement, saying, “The people of the CNMI deserve to know that all public land leases are in the best interest of the community, benefit the people, and that lessees respect and comply with all the terms and conditions of public land leases.”
In his letter to Magofna on Aug. 27, 2025, Igisomar said he issued the notices to MB Capital LLC to address certain outstanding matters. To ensure due process and procedural fairness, he added, DPL “will refrain from further comment or clarification” until the 30-day notice period has concluded.
Igisomar said DPL remains committed to transparency and to ensuring that all public land leases reflect the best interests of the people of the CNMI. “To maintain the integrity of the ongoing review and compliance process, I respectfully defer providing detailed responses,” he said. He assured Magofna, however, that once the lessee has had the opportunity to respond, DPL will be in a position to provide more information.
