PEGASUS Hotels’ creditworthiness is “adequate,” according to the Caribbean Information and Credit Rating Services Limited (CariCRIS).

In a statement on Tuesday, CariCRIS reaffirmed the ratings of CariBB, on the regional rating scale, and gyAA+ (Foreign Currency Rating) on the Guyana National scale based on the US$30M long-term loan the hotel has taken.

“The regional scale rating indicates that the level of creditworthiness of this debt obligation, adjudged in relation to other obligations in the Caribbean is adequate. The Guyana national scale rating indicates that the level of creditworthiness of this obligation adjudged in relation to other obligations in Guyana is high,” CariCRIS explained.

According to CariCRIS, the ratings of Pegasus are supported by the strong macroeconomic prospects for Guyana, which should drive demand for ‘Class A’ office space and accommodation. “The hotel’s competitive advantages in brand and location, underpinned by consistently high occupancy rates, also support the ratings. Further, Pegasus continues to report strong cash generation and good profitability,” CariCRIS further explained.
However, it was noted that the ratings are tempered by a need for improvement in internal management reporting, the high reliance on the promoter to drive success of the new project, along with a moderate project risk.

CariCRIS also maintained a stable outlook on the ratings. “The stable outlook is based on projected revenue and profitability growth in the hotel’s operations over the next 12 to 15 months that are in line with our original expectations, and good progress with the hotel’s expansion plans for new ‘Class A’ office space in the country’s capital,” it stated.
Established in 1969 by British Overseas Airways Corporation (BOAC), Pegasus is now owned by Guyanese entrepreneur, Robert Badal. Badal purchased the property in 2009 through his holding company, Sahara Investment Incorporated, to add some level of diversification to his existing business, Guyana Stockfeeds Incorporated (GSI). The holding company owns 97 per cent of Pegasus while three per cent is owned by the National Insurance Scheme (NIS) of Guyana.

Considered a premiere hotel in Guyana, a market leader with a strong brand both regionally and internationally, Pegasus has won the Guyana’s Leading Hotel Award accredited by the World Travel Awards.

The hotel consists of 130 rooms comprising of three suites, 33 luxury rooms and 94 standard rooms. It also includes three restaurants and several entertainment options including the Aura Bar and Lounge located on the roof of the hotel with a 360- degree view of the business district and the Atlantic Ocean, the Ignite Bar and Grill with live band performances and a wine bar. With three conference rooms and a ballroom, Pegasus is also used extensively for conferences, business meetings, corporate retreats, weddings and Christmas parties.

Against the background of a growing economy and strong prospects for the country’s developing Oil and Gas Sector, Badal has opted to extend his market reach and leverage the strong brand equity of the existing Pegasus Hotel, to construct a Suites and Office Complex (Pegasus Suites and Corporate Centre) on land adjoining the existing hotel. The project cost has been fixed at US$70M with 43 per cent (US$30M) being financed by way of long-term debt and the remaining 57 per cent (US$40M) financed by way of the promoter’s cash equity.