Marriott’s financial report confirms Brassington’s deception

Dec 23, 2015 News

Head of the National Industrial and Commercial Investments Limited (NICIL), Winston Brassington misled the media about Marriott’s rate of occupancy. He gave the impression that the hotel’s occupancy over the past few months matches what was projected in the feasibility studies.
Brassington hosted a press conference at NICIL on Monday last. At that forum, he was asked numerous questions on Marriott, some of which he answered and some of which he refused to give any response. However, it seems like even the few answers he offered were falsehoods.
When asked for a report on Marriott’s occupancy rate, Brassington related that the occupancy of the hotel is in line with what was projected.
“Let me say that from my general knowledge, the hotel’s occupancy is as projected.”
The feasibility study had projected a 48-60 per cent occupancy rate.

Head of NICIL, Winston Brassington

Brassington told the media, “As far as we understand, they are achieving what was projected. In any new hotel there is a period of ramp up, but I learnt that they (Marriott) are doing well. Take for example last month, they had 67 percent occupancy so occupancy is getting better, things are picking up, and this is how it will work.”
However, an audit report on Marriott which has been leaked to this newspaper strikes out Brassington’s statements and exposes his deception. That report indicated that Marriott is at risk of going under.
The report said that “there is a serious risk of default in the repayment of principal and interest on the Republic Bank loan should the hotel continue to make losses due to the less-than-desirable occupancy rate.”
The auditor went on to state, “In the circumstances, it would be necessary for the loan to be paid off at the earliest opportunity. This is especially so, since the Republic Bank has a lien on the hotel and surrounding area via debenture and mortgages.”
When asked about Marriott’s losses, Brassington refused to answer. He initially tried to dodge the questions, but soon came out plain and said that he wishes not to answer.
He told Kaieteur News, “I wouldn’t want to comment on that.’
He chose however, to stress that Marriott is footing all its operating expenses, “The government is not chipping in here at all.”
The hotel is projected to earn a rate of return of 8.9 per cent on the US$27M on the Syndicated Loan sourced through Republic Bank Trinidad and Tobago that has to be repaid as a priority.