Marriott Hotel project could end up costing more than US$52M – 27th Feb 2013
The Government has so far, beenM pouring tax payers’ money into the Marriott Hotel project which could end up costing more than US$52 million. Of that total US$27 million is expected to come from investors for the main, property and another US$8 million for the casino, nightclub and restaurant.
The Head of the Presidential Secretariat, Dr. Roger Luncheon today said, that the only gap in funding at the moment, is the US$8 million.
The rest of the money is coming out of the public’s coffers, and when construction is completed, Marriott International is expected to bring in a management team to run the hotel.
The financing structure for the hotel locks in private investors for a return of their dollars, but taxpayers money risk being washed away if the ambitious project fails.
Finance and industry sources say the project is a high risk one, given that existing hotels are struggling to fill their rooms, but Government is pressing ahead and could end up putting US$21 million ($4.2 billion) into the project.
The arrangement for financing includes “senior debt” syndicated by Republic Bank (Trinidad and Tobago).
A syndicated loan is one that is provided by a group of lenders and is structured, arranged and administered by one or several commercial banks or investment banks. In this case, the loan is being administered by the Republic Bank (Trinidad and Tobago Limited) but the Government has not named the other lenders.