…but unnamed private investor to be repaid from year one – Report
Guyana will not be receiving a dollar on its investment in the Marriott Hotel, until the 10th year of its operations.
This is documented in the feasibility study done for the project by Miami based, HVS Consulting and Valuation.
The hotel is designed to be a debt and equity project, with a US$12M investment securing ownership of the project and will in turn be responsible for US$46.5M in loans.
Money from the accounts of the National Industrial and Commercial Investment (NICIL) was used to invest in the Marriott Hotel Project, as well as a loan, totaling US$19.5M.
This is made up of a US15.5M loan and an investment of US$4M.
The US$4M invested by NICIL gives it 33 per cent ownership, according to Winston Brassington.
The unnamed private investor that is slated to put US$8M into the project will own 67 per cent of the hotel and will receive returns on their money from the first year of the hotel’s operation.
Only recently was it also disclosed that the management fee that will have to be paid to Marriott International will not be publicly disclosed.
To date, just under US$20M has been spent on the Georgetown Marriott Hotel, all of it coming from NICIL.
Atlantic Hotel Inc, the Special Purpose Vehicle created to build and own the Marriott Hotel with AHI is still to execute financial closure for some US$39M of the required US$58.5M for the completion of the hotel but Brassington has downplayed any notion that this would not happen.
According to the AHI Chairman, “When we started the project, we knew that we were still missing the equity investor.”
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