ATLANTIC Hotel Incorporated (AHI) has revealed that the management of Marriott Hotel is projecting that it will deliver a new operating profit (measured in cash flows) by the end of this year. This is according to a statement issued last evening by AHI – the owner of the Georgetown Marriott Hotel. In addition to the net profit, management also projects that the existing working capital is adequate to cover all operating expenses and as such the shareholder will not be called upon to inject any funds into the operations of the hotel.
This is supported by the fact that the management of Marriott had reported to the AHI Board of Directors, that for the month of August, the hotel occupancy was 52% representing an average occupancy of over 100 rooms per night for the month.
Preceding this, in July, it was reported that the occupancy of the hotel was 48%. Food and Beverage performance also reportedly exceeded its budget. Seizing the opportunity in its statement, AHI sought to clarify two reports carried by daily print, Kaieteur News; the first, published on Thursday September 24, which was titled “Marriott in danger of defaulting on Republic Bank payments” and another article “Republic Bank now ‘de facto’ owners of Marriott” on Friday September 25.
According to the owner-company, as part of the legal financial arrangements with Republic Bank Limited (RBL), payment on the interest on the debt provided for the construction of the hotel is not due until the end of 2016, and repayment of the principal is not due until 2017.
They further noted that during this period, interest will be capitalised in accordance with the loan agreements. In light of this fact, there is no outstanding payment owed by AHI/Marriott Hotel to Republic Bank Limited, the statement said.