Marriott Hotel sale: NICIL to engage US firm with US$90M bid

Having received a bid of US$90 million for the Guyana Marriott Hotel in Kingston, the National Industrial and Commercial Investments Limited (NICIL) has been authorised to commence negotiations.
Sharing this information on Thursday was Vice President Dr Bharrat Jagdeo, who informed that now that the evaluation is completed, negotiations can come underway with the top bidder.
The company, X, LLC – is a US-based investment group founded by Ramy El-Batrawi. The American group was also the top bidder among the six bids that were initially submitted for the acquisition of the Marriott Hotel, but they were rejected by the Guyana Government on the grounds of being too low.
“The evaluation had to be completed. NICIL has completed that evaluation. They have ranked the firm that had a bid of $90 million as number one ranked, and they have been given the authority to engage in negotiations with that company,” Jagdeo disclosed.
In a notice posted 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 for business in 2015, the same year ExxonMobil first found oil in Guyana’s waters.
Interested bidders were required to have the financial capability, which NICIL had set as a minimum net worth of approximately US$250 million, audited financial statements for the last three financial years, and letters of financial capability from a recognised financial institution.
During the initial bidding round, the highest bid of US$65 million was received from X, LLC. 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; Muneshwer’s 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. Each of the six bidders was then invited to resubmit a new bid with a minimum bid price of no less than US$85M.
Only two of the six companies that had initially vied to purchase the Guyana Marriott Hotel had resubmitted bids to meet the base price. Apart from X, LLC, the other company was Integrated Group Guyana Inc, who upped their bid to US$86.1 million.
The negotiations with NICIL can either result in the company going ahead with the sale, or, if negotiations fail, Government can either retender or move on to another bidder.
The Guyana Marriott Hotel, which opened for business in 2015, was constructed at a tune of US$58 million. 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.
A feasibility study conducted by a Miami-based firm, HVS Consulting, back in 2010 had outlined that the Marriott Hotel is likely to be sold ten years after it became operational at some US$76.1 million.
Vice President Bharrat Jagdeo had contended that the Hotel would not be sold until an “appropriate offer that mirrors” its true value is made. He had argued that now is the best time to sell the Marriott Hotel, stating, “Now it would be best to sell the Marriott off. You could probably maximise the price that you will get when it’s profitable, and before the seven new hotels that are privately [being] built, that are international brands, come on the market.”
He had reiterated that the hotel is operating at a profit, and provides some 500 jobs to Guyanese, directly and indirectly. (G12)