Government puts profitable Marriott Hotel up for sale

Dec 14, 2022 News

Kaieteur News – After investing US millions into the Guyana Marriott Hotel and burdening taxpayers with a US-multimillion dollar loan that the hotel was unable to service, the Government of Guyana (GoG) has now decided to sell the controversial hotel.

The almost US$60 million hotel started under Vice President Bharrat Jagdeo’s tenure as President using taxpayers’ dollars and other funds.

The hotel which was opened in 2015 is owned by the Government through the National Industrial and Commercial Investments Limited (NICIL). Notably, Atlantic Hotel Inc (AHI), a special purpose company owned by NICIL was established to own the Kingston, Georgetown hotel.

The Guyana Marriott Hotel

Back in 2017, AHI was unable to meet its due financial obligations to repay a loan from Republic Bank Limited of Trinidad. As such, AHI had requested the assistance of NICIL, the guarantor but the State agency was also unable to assist.

In order to prevent the hotel from being acquired by the bank, the former Government in April 2017 made the decision to transfer AHI’s financial obligations to the Central Government. This decision has resulted in US$1.1 million ($226 million) of taxpayers dollars coming out every six months (since 2017) to service the US$27 million loan – for a 13-year period.

The Marriott Hotel has been deemed over the years as a monument of corruption, and a colossal waste of taxpayers’ money. Importantly, financial statements for the hotel have not been made public for several years.

Vice President Bharrat Jagdeo

Now seven-years after being operational and touting the investment as one of the most “transformational project”, the PPP-administration is now ready to sell the hotel.

In an advertisement in December 13, 2022 Kaieteur News edition, NICIL issued a pre-qualification notice.

According to the advertisement, NICIL is seeking Expressions of Interest (EOIs) from persons or companies, individually or as part of a joint venture / consortium, with an interest in purchasing its shares in AHI for the acquisition of the Guyana Marriott Hotel.

NICIL stated too that the pre-qualification notice is for applications in order to shortlist the parties who have the necessary financial capability to undertake this request for EOIs.

Applications for pre-qualification must include the following information: financial capability in terms of net worth; audited financial statements for the last three financial years); net worth minimum (approximately US $250 million); and letter of financial capability from a recognized financial institution(s) to acquire NICIL’s shares in AHI for the Guyana Marriott Hotel.

The deadline for the submission of applications is on January 10, 2023 at 14:00-hours. The applications for pre-qualification must be submitted to the Chief Executive Officer of NICIL at Lot 199 Camp Street, South Cummingsburg.

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