The National Industrial and Commercial Investments Limited (NICIL), a company wholly owned by the Government of Guyana, is preparing to close the sale of the Marriott Hotel.
So says Vice President Dr. Bharrat Jagdeo who has already committed Cabinet’s approval for the sale.
American businessman, Ramy El-Batrawi, tendered the highest bid of US$90 million for the Marriott Hotel in Kingston, Georgetown.
On Thursday, Jagdeo said he was not sure if the negotiations with NICIL were complete but noted that Cabinet has accepted the highest bid of US$90 million.
“It’s basically to wrap up, you know the bid and bidder and as soon as they can wrap up, the earlier the better,” Jagdeo told reporters during a press conference at the Arthur Chung Conference Centre.
Initially, six bids were received by NICIL after it issued a prequalification notice and invited bids from individuals or companies interested in the hotel.
The highest of those six bids then was US$65 million, tendered by El-Batrawi. The second highest bid tendered was US$55.5 million from local businessman and owner of the Pegasus Hotel, Robert Badal.
But the government opted not to accept any of those bids, believing that the Kingston hotel was worth a lot more.
Subsequently, all six bidders were invited to resubmit bids with a minimum bid price of US$85 million. X, LLC then submitted the US$90 million bid while the Integrated Group Guyana Inc. submitted a US$86.1 million bid.
Earlier this year, Jagdeo said the government is selling the profitable Marriott Hotel, and once sold, he said the monies earned will go toward paying off the existing loan.
The hotel was opened in April 2015, following the controversial period of its construction. It remains today, 100 percent owned by the government, constructed with a US$17.3 million loan from Republic Bank. That loan was later restructured.
