AHI rejects Robert Badal’s proposed US$8M in Marriott

[www.inewsguyana.com] – Atlantic Hotel Inc (AHI) has no interest in the proposed US$8M in the Marriott Hotel by Chairman and Managing Director of Guyana Stockfeeds and owner of the Pegasus Hotel, Robert Badal.

AHI in a press statement noted that Badal is reported in sections of the media of being ready to invest the money in the Marriott Hotel development in order to become a majority shareholder.

However, AHI says he should not be taken seriously. According to the statement, advertisements inviting investor(s) expressions of interest to participate in the Marriott Hotel Project’s private equity were widely published since 2009, both locally and internationally and were placed in all of Guyana’s Embassies and Consulates abroad.

However, Badal never expressed an interest; as a matter of fact, he was against the building of the Marriott.

“Yet not a single local investor, including Mr. Badal, had expressed an interest in investing in the Marriott Project; on the contrary he has vehemently opposed this project. In 2013, AHI announced it had secured an investor, however, it was not until May last year (2014) that AHI and Republic Bank were able to release the name of the investor.

“Atlantic Hotel Inc. (AHI) wishes to make it clear that it has not, at any time prior to or since Mr. Badal’s alleged statement, received any expression of interest from Mr. Badal or any of his representatives in investing in AHI’s Marriott Hotel Project private equity.”

The statement further noted, “It is perhaps worth pointing out that both the Stabroek News and Kaieteur News, in October 2013, reported extensively on a statement issued by Mr. Badal attacking the Feasibility Study (major portions were released by AHI to the media) as “unrealistic assumptions.” In his statement, Mr. Badal predicted “crippling operating losses” for the hotel, “with no cash flow being available to cover interest rate payments as this outfit would not even realize 15% occupancy.” Mr. Badal went on to say that the hotel “would rapidly lead to bankruptcy.” Mr. Badal said that “it is no surprise that no credible investor showed any interest in this project.”    

AHI pointed out that the terms and conditions for the investment and the incentives offered, including those which Mr. Badal is now reported to be finding so attractive, were a matter of public records since 2012 and have not changed from the inception of the project up to the time of the closing date of the publicly advertised Expressions of Interest for private investors for the US$8M on 12th March, 2012.

“Mr. Badal cannot, therefore, credibly claim ignorance of these conditions and incentives when, in October 2013, he described the Marriott investment as “an indecent assault on the private sector and fraud on the taxpayer.” Clearly, Mr. Badal’s reported sudden about face and declaration of interest in becoming a major investor is not to be taken seriously.”