…management says hotel future rests with gov’t, oil boom

IN two weeks’ time the Guyana Marriott Hotel will be advertising for expressions of interest for its entertainment complex and for the leasing of its casino, even as the entity’s executives are working to improve its current 81st ranking of the 366 hotels operating under the brand in the Region.

Hewley Nelson, Chairman of the board of directors of Atlantic Hotels Inc, told the Guyana Chronicle in a recent interview that they have advertised locally, regionally and internationally for the leasing of the casino.

He said the successful lessee will be required to complete, outfit and operate the casino.

Meanwhile, management said that business at the hotel is picking up and that while they are banking on the country’s expected oil boom, its executives have noted that the future of the country’s largest hotel rests in the hands of the government. The hotel is owned by Atlantic Hotels Inc, a company incorporated by the previous government and it is managed by the international brand. During an interview on Thursday, Eduardo Reple, general manager of the hotel noted that Guyana is a “business” location and the hotel receives much of its patronage from government entities, the foreign embassies , the oil sector and the local community.

He said the hotel is working with three local institutions, adding that there are interns who work there thrice annually. He said interns came recently from the Board of Industrial Training and nine were hired by the hotel to function in its operations. Reple said four other persons who were on staff from the USAID’s, SKYE-Project were also hired by the hotel.

In addition, persons from the Carnegie School of Home Economics have been hired to work on the hotel’s team. “We are not here to have expats, we are here to develop the locals,” Reple said.

Reple noted that the post of finance manager will be filled in the coming days by a Guyanese female. He said since the hotel’s opening, it has promoted potential talent within its staff. He said one such person is the hotel’s senior sales manager, who took up the position after it became vacant.

As regards occupancy, Reple said that the rate has picked up this year. “We didn’t expect that we were going to ramp up as we are performing,“ he said, adding that the there is a lot of movement in the country’s developing oil sector. This, he noted, has caught the attention of the hotel’s plans for the future. The hotel is ranked 81st of 366 hotels in the Region and that ranking is based on customer satisfaction. Reple said that the firm is working to carry the ranking further up to 40 by 2020.

He said that last year there was a 50% occupancy rate and this year the rate has climbed to 65%. He explained that there are moments when there is high demand, noting that there are times when rooms are available at high rates and at low rates, depending on business at the time.

Reple described the Guyanese market as a “last-minute“ market. He explained that the company was concerned about its occupancy for July this year, noting that the Caribbean Premier League (CPL) cricket tournament was held in July 2016 and as such, the hotel was expecting the tournament to be held in July this year. However, the tournament fixtures for Guyana were shifted to August 2017.

He noted however, that there was a record-breaking 74% occupancy rate at the hotel in July, noting that it was a last-minute response from customers. “It is because the economy of the country is booming, the oil industry, and this benefits our industry and I think even in the long run, it will benefit the competition”, Reple said. “I see a very positive future, not only for giving the community an option, a place to go a place that is different, it is trending,” he said of the hotel. He said that there are many Guyanese who live overseas and on return, would visit the hotel with expectations of receiving the same service as the other Marriott-branded hotels around the world.

Marriott’s future
As regards the future of the Marriott in Guyana, Nelson noted that the project was never intended to be a stand-alone project. He said that a feasibility study which was undertaken cited that, for it to be viable, the hotel’s entertainment complex and casino would have to provide the requisite support.

He said that 40% of the income of the complex should have been from the casino and the entertainment centre, however, with the change of government the plans to establish the latter changed. In response to questions on the divestment of the hotel, Nelson said that the government has to decide on such a move. He said the management would have to ensure that the hotel is as “saleable as possible” if the government so decides to divest the entity, noting that government would want to make back its money if it makes such a move.
As regards questions pertaining to a contractual sum owed the contractor, Nelson said that it is likely that the hotel’s management and the contractor would go to arbitration. He explained that there were defects with the project, noting that the management of the hotel has instituted legal proceedings to have the seven to 10 persons working with the contractor who are “squatting” on the premises, to be evicted. Nelson said that the quality of the work in some regards was not up to standard and according to him, the defects amounted to in excess of US$4M.

On the issue of the contractor’s statement that the defined period for such claims has passed, Nelson said that there have been recurrent defects such as the quality of equipment supplied by the contractor, including the hotel’s filtration system and elevators. Nelson added that all projections have been exceeded in this regard. He said that there are 175 persons working at the hotel and in addition it has contributed to the economy. Figures including G$265M in value added tax (VAT) this year, PAYE G$118 (2016) and $26M (2017) were quoted.

In terms of the hotel’s operating income, the firm has been making approximately G$50M monthly and sums from this figure are used to maintain the property. He said that several international companies have already booked the Marriott for business events later this year, including for a Canadian mining expo, as well as other business missions. “Whether you like it or not, Guyana needs a Marriott,“Nelson noted, adding that if the evolving oil industry is taken into account, the Marriott receives the bulk of its business from large companies such as Exxon Mobil.

Reple said that the expectations of those companies are to stay at an internationally-branded hotel with such standards and qualities of accommodation. “Today, Marriott is the biggest hotel chain in the world; has the biggest distribution in loyalty programme; has the biggest reservation channel in the world,”Reple said, adding that whoever made the decision to bring Marriott to Guyana, did so with a purpose of finding reliable partners to support the venture. As the country develops, it will need additional hotels, Reple added, noting that the oil sector will bring a lot of business to the country’s hotel industry.