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No doubt about it - theft.
Eminent domain is for public good: streets, sewer lines, power lines, schools, public utilities. It is not for private businesses to grab away from lawful owners for their own use.
I would like to believe that if this goes back to the Supreme Court today, it would make a different ruling than Bush's Supreme Court made, when it opened up Eminent Domain to private businesses, especially in light of the fact that the 1996 decision in New London, CT that ruled private businesses could use Eminent Domain for their interests ended up displacing people and small business owners out of their land which stands blighted and empty because the private developer that stole that land didn't follow through.
I don't think displacing home owners and small businesses to build a hotel is in the best interests of a community. There is now precedent showing that such land grabs don't fulfill the requirement of "public good". Therefore, I feel it is a gross misuse of Eminent Domain to have land seized by a community from their own citizens to give to some private developer who may or may not actually develop the land. It is theft of the most egregious sort, taking away a landowner's home and/or livelihood for empty dreams.