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Marriott Guyana….US$51M investment cannot be supported
“Given the Govt’s perceived connection with the underworld and the narco-trade I wouldn’t rule out money laundering-” Pegasus owner
Gary Eleazar
The controversy has been brewing for years; the silence has been deafening but this past Sunday Head
CEO of the Guyana Pegasus Robert Badal
of State Bharrat Jagdeo along with other stakeholders turned the symbolic sod for the construction of a Guyana Marriot International Hotel leaving in its wake numerous unanswered questions.
Who are the shareholders? Why commit taxpayers’ money with less than a week to election? How will it be maintained?
These are questions that local hotelier, Robert Badal, is asking.
Badal is the principal owner and Chief Executive Officer of the Pegasus Hotel which has been recognized as the country’s premier hotel for decades now. He is of the view that firstly any investment in the hotel industry should be by the private sector and not an investment with taxpayers’ money, even a public/private partnership.
According to Badal, the government over the years has demonstrated its inability to prudently manage the taxpayers’ money which it has invested over time, on each occasion raising eyebrows.
Badal recalled some of the many failings. He pointed to the Skeldon Sugar Factory which he said should have only cost US$100M and would have performed better instead of having to plug US$65M more with the country yet to see benefits.
Despite this investment, Badal is of the view that the Guyana Sugar Corporation (GuySuCo) along with the families that depend on the sugar industry faces an uncertain future.
He spoke, too, of the Berbice River Bridge which was supposed to have cost US$30M but wound up costing some US$55M while attracting one of the highest tolls in the world.
“We have seen, over the years, so many failings by the government in the investment of taxpayers’ money…this Government has not been prudent with taxpayers’ money.”
Badal believes that any such investment in the industry should have been done by the private sector. He adds that if such an investment was feasible, the private sector would have been able to more effectively manage it and in the process receive a better rate of return.
Winston Brassington
Had the project, in his view, been feasible there would have been total private sector investment.
He questions the logic behind the investment saying that at present the country’s hotel industry as a whole operates at an average of a 30 per cent occupancy rate. “So why would taxpayers’ money be used to increase the inventory of rooms when there is no increase in demand?
“You tell me where the additional people will come from?”
Badal says that the people that travel to Guyana other than to do business generally are Guyanese returning to visit their families and they would stay with relatives while in the country. “They are not going to stay in a hotel.”
He said that under Jagdeo’s Presidency over the past 12 years the economy has only grown below the two per cent mark which would not enthuse any significant increase in traffic to Guyana.
Badal says that with an increased demand for rooms then such an investment would be justified and even if it were to increase then the only justifiable investment source would be the private sector.
The hotelier drew reference to the 2007 appeal by the Head of State for the country to increase its inventory of rooms available for the Cricket World Cup. According to Badal the majority of the new hotels that were built are now up for sale with no buyers available. “So why put taxpayers’ money to aid a multinational?”
Badal told this publication, “My issue is not putting up a hotel…If the Marriott wants to, it is a very rich multinational company, it should not depend on the taxpayers of this country to finance a US$51M investment and then it will come and run it…That’s not good business!”
The Pegasus owner vehemently said of the US$51M investment “…it will fail overnight.” 
He said too that at present the vast majority of Guyanese don’t know what the deal is with the Marriott…“they are paying the Marriott to come and manage this.”
Badal said that an investment of US$51M would require at least a 10 per cent return which would mean some US$5M. The entire industry in Guyana does not make half of this.
The Hotelier says that for Republic Bank to put US$27M as was stated at the sod turning ceremony then there would have had to be a Government guarantee.
“I went through this process,” Badal said adding that Trinidadian banks would not finance a hotel even half the size of the proposed Marriott, without a Government guarantee.
The owner of the proposed Hotel is Atlantic Hotel Incorporated (AHI) which Brassington has described as a Special Purpose Company. To date the only names that have been associated publicly with AHI are Brassington and Marcia Nadir.
He reiterated that there is so much more need for the money, “look at the roads that don’t last a rainy season…public sector wages, a host of problems need to be taken care of …why build a hotel for the Marriott?”
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I sit there watching telethons, ppl raising money to go abroad for surgeries, some persons give a little, some give alot and still they couldn’t raise the full amount. If the president donated his monthly pension to those ppl or children in need of surgeries he might win a nobel prize.
in the pic i see a white sand and blue water beach, will they build that too?
LMAO……………….star, yes I guess they will be the first in guyana to have white sand and blue water…………………..
Jagdeo is not thinking right that’s why he’s making these crazy deals, guyanese vote for change nov 28.
Is a shame to see what Barrat and his gang are doing to Guyana. People, please wake up and votes these vultures out on Monday. Please do that for your country.
Alright. I don’t want to sound like a PPP guy here and indeed I AM NOT, but this question shouldn’t have been addressed to a potential competitor alone. Yes, we got some insight into what’s happening with the government and its business but at the same time one shouldn’t expect anything positive from Mr. Badal who obviously will be biased against this venture as his company and hotel will stand to lose should this deal completes. The article should’ve also had the opinion of other businessmen in other sectors.
In fact, one of the things I have regarding the Guyana hospitality industry is that the hotels are expensive and the quality is not up to speed. In fact, most of the folks going back to Guyana are from Guyana and they stay with relatives. The market would be for people traveling to the country and I don’t see enough being done to attract droves of people to the country. For this there is credence to the money laundering charge as I don’t see the immediate need for more hotel inventory.
Point well taken dePastor; however the pivotal question should not be whether Badal is biased or the extent of said bias, it should rather be whether what Badal is saying with regard to hotel occupancy rates in Guyana is true or not.
Unfortunately, from all of the objective evidence available, Robert Badal is correct.
wow! it is amazing how you people are missing the point. What about all the people who can go to school or dont have access to clean water or just cant afford to live off of their pension, and the president going and invest in a venture which clearly will not benifit the population.
I agree with the second half of your statement and the fact that Badal would be biased. However it doen’t negate the fact that his opinion is a valid one and the logic is clear. Also, there would be no point in asking a fish vendor his opinion on the hotel industry or a minibus driver for that matter. Even a banker’s insight would be of some ignorance.
Very good points why the Marriott would not benifit Guyanese at this time, in reality the basis infrastructure is in a bad shape, i’m talking about the electricty supply, i’m talking about the unsteady water supply, i’m talking about the crime situation, i’m talking about the unstable political situation in guyana at present, i’m talking about the second thought of foreign tourists paying a visit to guyana without the fear of being robb or killed, i can go on and on, who ever is choosen by the people to run this country, should/must fix these things that i have mentioned.
Mr. Badal competition will drive down price. Your bottom line will be reduced but more rooms at cheaper price will enhance Guyana as a tourist destination bringing in foreign exchange.
your reasoning Tamboland is hogwash at best and RATwash at its worst
You are just a blind ppp/c supporter without any reasoning! shm!! I am pretty sure you working with Kwameeee
My boy…a primary school child will tell you that this is a bilge idea that the leaders have conjured up. You obviously don’t know much about hotels. A reservation in a Marriott hotel goes for nothing less that $200USD per night. First off how many Guyanese can afford that, secondly how many tourists would normally come to Guyana on a daily basis to occupy at least 70% of the hotel. Profit making International hotels can only survive on at least 70% filled capacity. Also please read my post to find out why Guyana is not a well known tourist destination and stop talking trash.
Tamboland, in an ideal situation what you have said would be both the logical and practical outcome of Marriott’s entry into the hotel business in Guyana; however Badal has done his homework, and his conclusion that the hotel occupancy rate in Guyana is 30% has been verified by calls to the major hotels in Guyana.
Badal’s estimate that this new venture upon completion would need to be making some 5 million USD annualy to remain afloat, is spot on.
It seems that there is something else is at play here, for if this is such a good deal for the Marriott brand, why are they not putting up their own money?
In addition, why the secrecy by Jagdeo and Brassington before the sod turning
yesterday?
Badal would have been out of the hotel business if there was no profits in the business.He’s afraid that,given his relationship with Jagdeo,Jagdeo would run him out the town.
Danny, when was the last time you stayed at The Pegasus ? The reason I ask is The Pegasus is Guyana’s premier hotel but there are some basic bed and breakfast hotels in the U.S.A. that makes the Pegasus look like a tent in your backyard (No disrespect to The Pegasus).
Thanks for your unsightliness.
TELL THAT TO THE OTHER HOTEL OWNERS WHO CATCHING HELL!
Guyanese are afraid to come home what will bring the tourist the smell of garbage and a potential victim of a robbery get real I living on a tourist destination people would not risk the lives of their family for a vocation
This is one of the most ignorant statements on this discussion. Hello, people do not decide to go to a destination for vacation because it has the cheapest hotel rates, when in the first place there was nothing to attract them to that destination. Guyana is no tourist destination, and cheap hotel rates will not make it one. In fact many of the most sought after tourist destinations have relatively expensive hotel rates that people are willing to pay. You are putting the cart before the horse in the same way this administration did with pursuing this ill conceived project. Develop the sorry excuses the country has for roads and airports, provide stable and adequate basic amenities like water and electricty as a start, and control crime and narco trafficking before you talk about tourist destination.
Interesting comment, however as a guyanese citizen living abroad, I have never heard of a foreign national saying the they plan on going to vacate in Guyana. Most have never even heard of the country and have no idea of its existence. You mention Guyana and most people think of Ghana, in Africa. So to add hotels to a country with no substantial tourist attractions is not only foolish but an insane investment even for the private sector.
Where the hell have you been all this time? If you return to Guyana you will fit in with the APNU gang. Same thought process
Who did the feasibility for this project? Will this study ever be made known to the stakeholders (Guyanese)?
I would guess the Nokta faction of the Cabal.
I amon this same view, since Marriott is just a big bran dname, why not invest they own money, since they see guyana suitable to have their hotel, so they are the only winner in this business.
Them bee’s gone occupy the rooms and play hide and seek.
You see the problem here is that when a leader doesn’t have vision they tend to cannibalized on their own – hoping to keep a big secret and the Tax payers will not know. The recklessness of spending the tax payers money without substantial reason that such will be able to repay the treasury and also some interested is not the way this Government think. What they do is to take tax payers money gamble with it and pocket the returns. It is the reason that the Guyana treasury always run broke, opening the path way to beg internationally (Jagdeo trade mark) – IMF, CDB and other to fund projects in the tune of Billions. Sending Guyana into more poverty – a recipe for corruption (another trade mark of Jagdeo). Until the country can deal with it’s high level of corruption and crime rate no one will fill these rooms. Only a matter of time for they all to go in default. Every 5 years investors have to watch what is playing out with the politics in Guyana – every time it is a scary part for businesses.Why? All the time they talking about good lets hear how many trillions Guyana owe? If Marriott want to invest let them spend their money bottomline! Something just come to light in my mind – This is not Marriott, They are using the Tax Payers money to build a hotel for there own, they will pay to use the name Marriott and Pay for the Management part and they are the ones benefiting ( Jagdeo and other – don’t forget he is out of the picture so he still want a lavish life style – one way to keep the million dollar rolling in)
i strongly agree with Mr. Badal albeit he would be concerned more with the future of the Pegasus hotel, he has a point. The last thing Guyana needs is another failed business venture more so a hotel. There is no one in this country, including the one who came up with the idea, that can convince me that this project would benefit Guyanese in one form or the other. Tourism in Guyana is already failing not because Guyana is not beautiful but rather there is no proper management and innovative thinkers who are trained to promote and showcase our beautiful land. More obvious is the fact that tourist do not go to countries where corruption and politics, moral ethics and a poorly developed environment, mosquitoes and stench of garbage, impolite, arrogant and anarchic individuals occupy. NOOO Sir. First, these people involved need to understand that having a Marriott Hotel, although sounds like a very nice idea, cannot be classed as DEVELOPMENT. Development is having certain conditions in place before you even consider investing in something to that nature. The ideas that the leaders of this nations come up with would lead you to believe that while they are having their morning showers ideas would pop into their heads and when they get into their respectful offices after having a strong breakfast, would put these ideas into effect immediately without proper consultations. Don’t let me get started with the OLPF project. That is another shower idea that will fail without satisfying it’s purpose. I will have to talk about my analysis another day. But for now digest this. GUYANESE PLEASE DON’T LET THE REALIZATION OF THIS IDEA OF A Marriott Hotel BECOME A REALITY. WE DON’T NEED IT.
I truly believe that the statements outlined in the article are factual and therefore ask the following. How does the developers intend to get water to the upper floors of this hotel for their guest and the fire sprinkler system a requirement for hotels and other large structures, when currently in Guyana, water is not available on the ground floor of homes? Why is the government resources not being spent to clean up the filthy condition, that Georgetown and other areas find’s its self in. Why can’t the people of Guyana have the information on the names of the private investors, remember taxpayers money is being used to build this hotel? Most Guyanese living overseas apart from staying at relatives when they visit Guyana and having to spend one night at a hotel in order to be at the airport for early morning flights are mostly afraid of the crime situation. This is something that this government I believe has turned a blind eye to, so in a final analyst, this hotel is not needed at this time and the plans should be shelved.
They did not put that in the budget sir, clear water shown on the outskirts of the building will be taken up in buckets up the back staircase, along with the rain water will work for this hotel, for hot water, they will heat it up with the sun rays from the rooftop, please do not worry, it will be a successful endeavor.
Marriott is not interested in investing its own money to build hotels anywhere. They are primarily interested in selling their brand. So its the investors that approach Marriott for contractual arrangements to use the brand. Part of those arrangements would dictate that the hotel be managed according to Marriott’s specifications, this does not mean that Marriott will be doing the day to day management, it means that Marriott will be stipulating how things are done.
OMG!!! Where is the men and women of intregity in this country, are we all so willing to be fooled that we will allow ourself to believe anything. Remember if you dont stand for somthing we will fall for anything. Try selling Guyana/ Georgetown to enough tourist to keep that hotel alive with the compitition all around us. Dont get me wrong, but health care, transport, night life, resturants, security and the PEOPLE’s attitude thats all left behind. all these things needs to be in place first to support this desperate attempt to stay in power and immune from justice. Simply put, this is just another attempt to robb the people of the oppertunity to change everything including the constitution….. TIME FOR CHANGE, ANY CHANGE ALL
As with all Jagdeo’s public-private ventures, the ultimate goal is to use public funds in ventures then at the appropriate time the government will sell its shares to friends of the king. This is how the king runs the government: as a piggy bank for his friends. And this is why king will want to stick around.
“…why build a hotel for the Marriott?” That is indeed the US$51M question.
The answer:
.kcab kcik yciuj taf ecin a teg oT
HInt: read right to left
This is just another money laundering opportunity. There will be massive cost overruns and drug money will be washed to cover the overruns. Guyanese need to wake up and get rid of this govt that’s preying on them!!
no more pnc aND AFC, LEAVE THE PPP WE ARE HERE TO STAY, NOV 28 WILL SHOW THE WORLD WE ARE FOR THE PEOPLE
You are in the wrong conversation lambada. Although, the decision makers are the PPP party, the response would have been the same if it was another party robbing our country of its resources.
Guyanese listen to the wise words of the Ceo….Tante has been in the Hotel(HO) Resturant(RE) Café((CA) for the past 32 years and I will advise you to pay heed to what Mr.Badal is saying. The (HORECA) as it is named over here is the last business investment one can venture into at the moment especially the 5*. The five stars are the hotels that are hit worst of all. One can hardly afford to go to the café at this time and stage.Ever since 09-11 there has bveen a struggle in this sector. 2008 its has fallen entirely on its head. 3* hotels do better…..DO NOT BE FOOLED AGAIN….and have VALUE FOR YOUR TAXED DOLLARS
MR TABBOLAND, FROM UR STATMENT,I CAN SEE U NEVER WENT FAR IN SCHOOL, AS WE SAY IN GUYANA, U PELT COW WITH UR SLATE.
Say what you may, this is progress( we had nothing before- now we have a world class hotel) and competition is never a bad thing for the customers.This will create jobs for Guyanese, boost the Tourism Industry, put Guyana on the World Stage (aren’t you tired of being disrespected by others), attract more investors,tax revenue and contribute to the economy of the Country.The role of Government is to facilitate investors and developers.No one will throw good money after bad investment. Give praise where praise is due!
greenguide…sorry to say this but you are blessed with the tunnel vision syndrome. Firstly, let me slap you with these simple questions; how many tourists would arrive in Guyana on a monthly basis?, what is the %age of vacant rooms in all hotels/guest houses?, why isn’t Guyana attracting tourists to fill these vacant capacities? Is there a shortage of hotels in Guyana? What is the difference in a Marriott in Barbados and a Marriott in Guyana?, Do you think for any reason a tourists would go to particular country to stay in a 5 Star hotel? Tourist go to counties to visit historic sites, take a tan on a beach, nature adventures, etc. not to stay in a Marriott hotel, that is secondary choice that tourists would make. Many people don’t come to Guyana simply because they are robbed, the country is is a bad shape in terms of FIRST CLASS DEVELOPMENT, Guyanese are bad mannered, vulgar individuals, the capital is always filled with garbage and the smell is overpowering, there is chaos in the layout and organization of Georgetown, and the list goes on. Logic and proper research would tell you that. Or Just a quick stroll in the Stabroek, Regent street and Bourda areas. The president should have invested in finding remedies to these problems before even considering to to construct a world class hotel. Never put the cart before the horse.
Greenguide, that is the most idiotic statement I have ever heard. That’s like saying I had no disease before now I have AIDS and I should be thankful. Progress is measured not by how much you invest but by the return on your investments. There is no possible way to create progress by using taxpayers money to completely fund an investment.
Mind-boggling….there will absolutely be no return on this investment…it will fail??? Put some water in you wine! When did you come up with the theory that taxpayers money cannot fund an investment??? In primary school?
We have no choice, but to enjoyed the benefits. Sad to see so much sour face about something that will highlight your beloved country. Be possitive.
The highlight is for it to be a smart venture. The money should be invested in making the country clean enough to be a tourist attraction. Then the goverment wouldn’t have to invest the taxpayers money because the private sector would be bidding to invest.
Eureka!!!! we’ll have to find an award for you if you return to Guyana.
Isn,t the Pegasus enough and of international standard,,,,,well mouth open story jump out,,,if Barrat Jagdeo has a deal in the Marriot and it,s unlawfull,,any wrong doings by jagdeo and any other person ,,,well they must bear the consequences,,which is naturally jail,,if ever you do know that you are going to steal, it was well planned ,,therefore once caught you must also be prepared to enjoy your jail time with pleasure,,,,simple.