Latest update February 4th, 2025 9:06 AM
Jagdeo says not entertaining any more questions on Marriott Hotel
Kaieteur News – Vice President (VP) Dr. Bharrat Jagdeo on Thursday said that he did not want to “screw up the afternoon” by entertaining another question from Kaieteur News on the sale of the profitable Marriott Hotel.
Jagdeo was at the time responding to a question from Kaieteur News on whether the US$90M deal with the highest bidder for the hotel has been finalised. He responded, “No, No! Not the Marriott again, not the Marriott. That issue I guess by now it would not have already gone to Cabinet, I am not sure…but NICIL (National Investment and Commercial Investments Limited) is dealing with that, Don’t Screw up the afternoon.”
Jagdeo, who was at the time speaking at a press conference held at Freedom House, then advised the media to call the head of NICIL Radha Krishna Sharma for an update.
The last update that the media received from both the VP and Sharma on the sale of the Marriott Hotel was provided on August 17, 2023 when the duo said that the government is in the process of finalizing the sale of the hotel for US$90M to American businessman, Ramy El-Batrawi.
Vice President, Dr. Bharrat at his press conference on Thursday
El-Batrawi submitted a bid of US$90M, making him the highest bidder for the Kingston, Georgetown property. Negotiations with El-Batrawi and NICIL began in June 2023.
The Government made a decision to sell the profitable asset in 2022. Many questioned the move but VP Jagdeo while admitting that hotel is profitable had said in March 2023 that it is a wise business decision to sell it now.
Jagdeo opined that within a few years, several hotels are expected to come on stream and in order to avoid competition, this is the best time to maximise the profit and sell the hotel.
The Marriot Hotel
According to Jagdeo, the proceeds of the sale are to be used, “to clear off the remaining loan and some of it will come back to the Treasury to be used back for whatever purpose is determined.”
Notably, a decision by the former administration resulted in US$1.1 million ($226 million) of taxpayers’ money coming out every six months (since 2017) to service the US$27 million loan from the bank – for a 13-year period.
This was after the hotel was unable to service the loan. In order to prevent the hotel from being acquired by the bank, the APNU+AFC Government in April 2017 transferred the hotel’s financial obligations to the Central Government.
However, while in Opposition, the People’s Progressive Party (PPP) was opposed to the hotel’s financial obligation being transferred.
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