Controversially built with taxpayer money, the US$58M Guyana Marriott Hotel was commissioned by President Donald Ramotar yesterday during a morning ribbon-cutting ceremony followed by a grand opening reception attended by a few hundred persons in the evening.
At the ribbon-cutting ceremony Stabroek News spoke with Xu Han, one of the potential Hong Kong- based private investors who said that he was pleased with the 197-room hotel and hopes that the legal action filed by an opposition activist is resolved soon.
Its opening marred by protests yesterday morning (see other story on page 15), the hotel has attracted vociferous opposition over the employment of taxpayer money to build it, the virtual giveaway of the land it is situated on, the almost exclusive use of Chinese labour to build it, the difficulty in attracting investors, the proposed plan to cede two thirds of the shares in it for US$8m and the question of whether the hotel was needed and could be afforded.
Han said he was confident that there would be a resolution soon as ACE Square Investments Ltd, the company that would be responsible for assuming the controlling interest of Atlantic Hotel Inc (AHI) was a publicly traded company.
Director of government holding company NICIL and Chairman of AHI Winston Brassington had previously stated that financing from Republic Bank of US$27 million and from the Hong Kong equity investors of US$8 million remains committed but financial disbursement has been partially delayed due to legal actions filed by the opposition. Former Member of Parliament Desmond Trotman had filed a legal action last year opposing the passage of the mortgages from Atlantic Hotel Inc to Republic Bank and the matter is ongoing.
Without the injection of the US$8M from the private investors which would then result in the transfer of 67% of the entity to ACE Square Investments Ltd, AHI retains ownership of the Guyana Marriott. Brassington did not disclose yesterday the daily or monthly projected costs to run the hotel with around 230 employees despite previous queries by Stabroek News.
He only noted that the incoming revenue would be responsible for maintaining the hotel now that it was in full operation. Daily operating cost for the intended five-star operation is expected to be high and it is unclear if the prospective investors or the Government of Guyana is footing this.
As it stands NICIL has invested US$36M into the project – the brainchild of former President Bharrat Jagdeo – with Republic Bank Ltd of Trinidad investing US$15.25M out of its US$27M total financing. Brassington had previously stated that the additional financing was also hindered by the ongoing legal action.
Roots
Brenda Durham, Senior VP and Regional General Counsel for Marriott International told those present at the ribbon-cutting, inclusive of local and regional media, that the Marriott was committed to Guyana and was establishing roots.
The Guyana Marriott had invited regional media from Jamaica, St Lucia, Barbados, Antigua and Trinidad and Tobago to cover the event and partake in the Marriott experience for the weekend. A total of 12 regional media representatives attended the opening which was a smaller number than was initially earmarked.
Inside the compound members of the private sector as well as the diplomatic corps were treated to sparkling wine and dishes prepared by the Marriott chefs. There was no one from the opposition present for the early morning ceremony. While there was a barrage of cheers and congratulations after the ribbon-cutting prior, the protest by members of the opposition coalition remained in the air.
Security for the hotel was ever-present within the compound, but outside along the road, police barricades were unable to contain the vocal protestors who shouted that they were peaceful and just wanted to march along the public roadway. They were led by APNU’s Ronald Bulkan as well as Gerhard Ramsaroop. Brassington told Stabroek News that he wanted the attention to be on the hotel, the staff and the service which he said were exceptional. Waiters and Waitresses weaved seamlessly through the crowd having been subject to over 300 hours of training.
At the opening, the President and Tourism Minister Irfaan Alli were presented with keys.
During the reception last evening in the Grand Ballroom over 500 guests made their way in and out sampling everything the hotel had to offer including the panoramic views of the Atlantic Ocean and Georgetown.
Ramotar made brief remarks and commended the construction of the hotel despite the strenuous opposition from political parties and others.
The Marriott project had been spoken about by the PPP/C government since 2006 but several attempts to get it started failed. It roared to life in 2011 with the sod turning ceremony on November 20. The contractor was Shanghai Construction Group of China.
