Marriott to be half-full for first four years of operation
he government continues to insist that the Marriott Hotel project is feasible, despite the abrupt closure of Hotel Tower. Today, the administration’s chief spokesperson said that the closure of the hotel has to do with poor marketing. So what are the projects for the Marriott. Here are some details..
A feasibility study by American company HVS internal shows that just about half of the rooms at the Marriott hotel will be filled in the first year of operation, and four years ahead, things will not improve dramatically, with the projected occupancy rate in 2018 projected at just 62%.
The starting rate projected for hotel rooms is US$167, and four years later, that price will increase by just over $10 dollars.
The government’s chief spokesperson Dr Roger Luncheon has said that the country’s needs suitable accommodation for international gusts. For example, he said there was a mad scramble for rooms to accommodate persons currently in Guyana for the annual meeting of the Caribbean Development Bank.
The Proposed Marriott will be a full-service hotel lodging facility and entertainment complex containing 197 rentable hotel units, a nightclub, and a casino. Luncheon said that the current hotel rooms are not best suited to international guests and the Marriott Hotel will help to boost Guyana’s tourism image.
The Marriott Hotel is being built at cost of US$58.5 million – half of that money is coming from debt financing, with tax payers funding almost $20 million.
The financing arrangement with Republic Bank ensures that the external creditors received their money first before any others, including the government’s investment arm NICIL, through which public financing is being challenged.
A tax agreement has been executed with the Government of Guyana to provide a range of tax benefits: there is a 10 year waiver on corporate, property and withholding taxes; relief from import duty, VAT, excise tax (if applicable), and any other import fees, taxes, duties on machinery, equipment, building and other materials, fixtures and fittings and furnishings (including linen, utensils, and accessories) and non-luxury vehicles required by the developers for the construction only of the Project.