The Georgetown Marriott Hotel Project entails the construction of 197-rooms that will meet the Marriott International Standard for a five star hotel. The hotel will be managed and operated by the Marriott Worldwide chain of affiliates. A second component of the project entails the construction of a-29,000 square feet entertainment complex that will house a casino, restaurant and nightclub all of which will be privately operated, separate and distinct from the hotel and its operator.
All Marriott Agreements have been executed and the Marriott team continues to intermittently visit Guyana during the building’s construction.
An estimated 12.2% of Guyana’ Gross Domestic Product (GDP) comes from travel and tourism in 2011 up from 11.5% in 2010. The World Travel & Tourism Council estimates that there would be growth in this sector by 2021 from G$35.1B to G$42.3B, nearly doubling from 2011 to 2021, making this project a worthwhile investment.
The project’s construction and management is owned and overseen by Atlantic Hotel Inc. (AHI), a company owned by the Government of Guyana (GoG) through its shareholding company NICIL. AHI was incorporated in Guyana on September 10, 2009 under the Companies Act 1991.
About the Project:
The project is a design-and-build contract arrangement with a subsidiary of an internationally recognised construction firm. SCG International (Trinidad & Tobago) Limited submitted an alternative design proposal during the tender process which was considered to be more cost effective and is in accordance with Marriott International Hotel Design Standards and was accepted by Marriott International as the look of its Guyana flagship hotel. The design-build contract will be a FIDIC contract.
SCG (T&T) is a subsidiary of their parent company Shanghai Construction Group of China. SCG has a wealth of experience in Building construction, M&E installation, industrial production, real estate development, garden and landscape construction and industrial investment. It was listed in the top-100 on the "Top 225 International Contractors" by the US Engineering News Record in 2011 and 2012.
The total project cost is US$58M. Of this the construction aspect for the hotel and outer shell of the entertainment complex are valued US$50.9M.
This public/ private investment has long term financing from RBL (T&T) Ltd. The private equity shareholder will be the majority investor while AHI and GoG, through NICIL, will be a minority partner holder.
Construction began in April 2012 and is scheduled to be completed by August 2014.
An Expression of Interest for qualified contractors was publicly advertised in 2009. Twenty three (23) firms expressed interest in being shortlisted for the project. After an evaluation against the prescribed pre-qualifying criteria, the seven shortlisted firms were invited on January 23, 2011 to bid for the project. The entire procurement process was in keeping with the principles of openness and transparency and guided by the same tenets contained in the Procurement Act (2003) of Guyana. Tender for the construction of the hotel and entertainment complex was closed on May 3, 2011 at 2pm and submissions were publicly opened at NICIL’s office in the presence of a representative from the Guyana Audit Office.
Bidders were given the option of bidding on a design already conceptualised or to submit an alternative design that will meet the Marriott standards, AHI’s requirements and LEED certification. Two bids/proposals were received.
It should be noted that the advertisement to prequalify contractors was advertised locally, regionally and internationally.
In response to the publicly advertised expression of interest two local contractors expressed an interest to be shortlisted. However when compared to the other submissions by other companies and compared to the prescribed list of requirements and experience required they were not shortlisted. The pre-qualified firms were highly experienced, specifically in building other international hotels.
The project has been granted a 10-year tax holiday concession in keeping with Guyana law as well as duty free/VAT exemptions on all imports (as regulated by the Guyana Revenue Authority) only for the construction of the project. This does not extend to imports during operations.
Request for Proposals for Construction Supervision for the Marriott Hotel, Guyana, Georgetown project was publicly tendered starting February 17rd 2012 and closed March 9th 2012. The closing date was extended to March 16 at 2pm and opened at the NICIL office in the presence of Auditors from the office of the Auditor General. Two proposals were received as follows:
M. A. Angeliades Inc - US$1,068,000.00
CEMCO Consultants Inc - US$1,614,000.00
AHI contracted M.A. Angeliades of New York to supervise the construction of the project based on price and experience with constructing hotels both in the USA and within the Caribbean.
A contract requirement is the issuance of three bonds – which are – (i) an Advance payment guarantee; (ii) a Performance Bond and (iii) a Parent Company Guarantee. All three documents are issued to the benefit of AHI against breaches of contract and failure to perform.
Marriott pioneered the concept of establishing a global brand for a hotel company when it entered China in 1991, a concept which has been gaining momentum. Marriott International is one of the leading worldwide operators and franchiser of hotels and related lodging facilities, as such the decision for this brand of hotel.
The Caribbean is dominated by the Marriott Courtyard making the full Marriott Hotel in Guyana the first in the Caribbean.
One of the main features of the hotel is the use of the water front and the implementation of the board walk, which the site captures ideally. Further, the hotel would be in the heart of Capital City where there is a concentration of the population.
In accordance with the environmentally progressive policies of the Government of Guyana, the project will aim for LEED certification. The design team has identified several points deriving from sustainable site design, reducing water usage, harvesting rain water, passive solar design, using energy efficient equipment, using sustainable materials and finishes and ensuring a good and healthy indoor air quality. It is felt that long-term operating costs of the hotel will be reduced through such resource saving steps.
According to the feasibility study initially contracted by a prospective investor and then updated at the request of AHI, Guyana offers 50 hotels and motels totalling 1,370 rooms. The study expressed the opinion that all of the lodging facilities in the city even what is widely regarded as the highest quality option have “dated” infrastructure, while the service standards are below the anticipated quality of the proposed Marriott.