Grand Canyon Hotel Group announces $3.5 billion hotel development deal in Mackinac

Mackinacs Hotel Group announced plans on Tuesday to buy and redevelop more than half of the company’s hotels and condominiums in the Lake Michigan region.

Mackinac City-based Hilton Hotels & Resorts, which owns more than 200 hotels and is building two luxury hotel complexes, said it will invest $3 billion in its hotels in Lake Michigan, and it will buy the other two properties in the region.

The company said it plans to create more than 400 jobs and employ 1,200 people.

The deal includes a hotel in Lakeland, Fla., which has been dormant for more than a decade.

The announcement comes less than a year after the U.S. Justice Department accused the hotel group of defrauding more than $1 billion by overstating the number of guests and charging higher hotel rates.

The companies settled the charges in August, and the Justice Department has since closed another investigation into the allegations.