Guyana Marriott Hotel sale: Companies rebid at US$90M and US$86.1M

Only two of the six companies that initially vied to purchase the Guyana Marriott Hotel, Kingston, Georgetown have resubmitted bids to meet the base price of US$85 million as set out by the National Industrial and Commercial Investments Limited (NICIL).
These firms are X, LLC at US$90 million and Integrated Group Guyana Inc at US$86.1 million.
During the initial bidding round, the highest bid of US$65 million was received from X, LLC, an American investment group founded by Ramy El-Batrawi. The company’s website says its primary focus is to invest in and enhance target industries.
Among the other bidders were Pegasus Hotel Guyana, which bid at US$55.5 million; Georgetown Investments and Management Services Inc, which bid at US$50M; Muneshwers Ltd at US$25 million, Integrated Group Guyana Inc at US$55 million, and NCB Capital Markets Limited at US$33 million.
The Guyana Government had publicly stated that the six bids that were originally submitted for the acquisition of the Guyana Marriott Hotel came in at a figure that was not acceptable.
As such on May 2, 2023, all six bidders were contacted and advised by NICIL that their submitted bids had been rejected. All six bidders were then invited to resubmit a new bid with a minimum bid price of no less than US$85M and the deadline for submission was Tuesday.
The bidders were advised that their bid must be submitted in a sealed envelope and deposited in the tender box located at NICIL’s Office. All bidders were also invited to attend the bid opening on Tuesday in NICIL’s boardroom.
At the bid opening, representatives of one bidder were physically present, while a representative of another attended virtually via Zoom Video Conference; NICIL representatives were also present.
A decision will now be made on the next steps forward regarding the sale of the hotel, which was constructed to a tune of US$58 million.
A feasibility study conducted by a Miami-based firm, HVS Consulting, back in 2010 had outlined that the Marriott Hotel, which opened in 2015, is likely to be sold ten years after its operationalisation at some US$76.1 million.
Vice President Bharrat Jagdeo had contended that the Marriott Hotel would not be sold until an “appropriate offer that mirrors” its true value is made.
We know what a true value will be in the current context. So, that matter should be put to rest that we will not proceed with any of the bids because we believe that they’re too low based on the value of that asset now and its capacity to earn,” Jagdeo stated last month in response to the initial six bids.
The Government’s rejection of the initial bids submitted had attracted criticisms from some quarters. In response, however, the Vice President argued that Government is not obligated to accept the highest bid.
In a notice back in December 2022, NICIL had announced its intention to sell the State’s shares in Atlantic Hotels Incorporated (AHI), the State-owned holding company for the Marriott Hotel.
AHI is the NICIL special purpose company that fully owns the Marriott Hotel, a 197-room hotel that opened in 2015, the same year ExxonMobil first found oil in Guyana’s waters. The hotel has since gone on to play an important part in Guyana’s developing oil and gas sector, as it is used to accommodate local and overseas offshore workers. It is also a prime venue to host numerous private and State-sponsored events. (G11)