Hyatt owners give insurers 14-day deadline

The owners of
what was the inland part of the Hyatt Regency Hotel have given insurers 14 days
to pay a settlement agreed in 2008 before they take further action in Cayman’s
courts.

The Hyatt
Regency Hotel was heavily damaged by Hurricane Ivan in September, 2004, more
than five years ago.  Although the Beach
Suites part of the property later reopened, the inland portion of the hotel has
never been repaired.  The Hyatt pulled
its branding from the properties at the end of 2007.

Bill Powers,
the general manager of the Grand Cayman Beach Suites, the former Hyatt Beach
Suites, sent a statement on behalf of the owner to media Friday to advise the
public about the situation.

“After Judge
[Alex] Henderson
finally decided in favour of the hotel… Houston Casualty Company’s co-insurers,
including several Lloyds of London syndicates, Wurttembergische Versicherung AG
and Ecclesiastical Insurance Office Plc, seemed to realise that the writing was
on the wall and agreed to meet the hotel’s owner for some proper settlement
discussions, which eventually led to a settlement figure being agreed with
Houston Casualty Company’s co-insurers on 11 July 2008,” the statement said.

“People and
businesses obviously pay insurance premiums on the basis that when they have a
loss arising from a natural catastrophe such as Hurricane Ivan in 2004, insurers
will honour their obligations under insurance policies and indemnify the
victims promptly. 

“Here we have
a situation where a settlement figure has been agreed with the insurers some
time ago, yet insurers continue to delay payment of the agreed settlement figure…
which simply has to be unacceptable as a matter of public policy, especially
for an island such as Cayman.”

  The
derelict inland property has become infested with rodents and other pests and
is an eyesore for those traveling along the Esterley Tibbetts Highway and for those
living or working in the general area. 
The Cayman Islands Government has been pressing the property’s owner to
either sell the property or make the necessary repairs and reopen the
hotel. 

The owner has indicated that once the insurance
settlement is paid, the hotel would be repaired and reopened.  

0
0

NO COMMENTS