Drastic decline in business forces Hotel Tower to shutdown

May 28, 2014 News

By Abena Rockcliffe
While the 197-room Marriott is gearing to open its doors for business, popular City Hotel, Tower has shut theirs.
Management yesterday announced that a “dramatic decline” in business has forced the entity to close. A public missive released by the hotel also stated that its assets will be liquidated within the next month so that employees can be paid.

A female employee holds up a placard which reflects her plight.

On Saturday last, several workers attached to the hotel mounted protests at the Main Street location to register their aggravation at not being paid. Those involved in the demonstration lamented that they had not been paid for quite some time. One senior employee said he has not been paid in seven months. And Kaieteur News understands as many as 50 workers, 45 of whom are unionized, are affected by the hotel’s “flop.”
Yesterday, Hotel Tower announced “with regret” that it was forced to close its doors for business as of May 24.
Management said that this decision was a last resort, especially given the number of employees likely to be affected.
President of the Clerical and Commercial Workers Union (CCWU), Sherwood Clarke, had told Kaieteur News that the hotel’s management had recommended that staffers be laid off for six to eight weeks until the hotel is able to raise its head above water. However, Clarke said that the union rejected that proposal.
According to him, the union had, instead, recommended a reduction in the work-week from five to three days, a recommendation to which management agreed.
He said, however, that workers were told by management that the initial proposal was in place.
It was explained that despite best efforts, the hotel was unable to meet certain financial obligations.
It was made known that while the hotel remained asset-rich, there was insufficient liquidity to finance the day-to-day operating expenses of the hotel.
Tower Hotel’s electricity supply was cut by the Guyana Power and Light Inc. The hotel said that this was the last straw that forced management to close its doors. Alternative arrangements were made for the guests of the hotel to facilitate the closure on such short notice.
Management expressed its gratitude to the employees of the hotel, whom they said have served loyally and with dedication throughout their employment.
“Management wishes to express our sincerest and heartfelt thanks to all the dedicated workers who still showed up for work weeks after Management was unable to pay salaries. Steps are being taken to liquidate assets to cover these outstanding salaries owed to employees within a month,” the statement added.
Hotel Tower has been struggling in recent years, but it became worse over the past two years. The hotel has been on the market since March but there are no known offers. Just this past week, the Guyana Power and Light disconnected the electricity as a result of mounting unpaid bills.
In 2009, Tower Hotel was sold to Canal Hospitality Inc, a business partnership.
Despite such closures, government insists that the Marriott Hotel is what Guyana needs at such a time.