Mr Badal knows what he is talking about. I told Mr Rev Ally, fake PHD/MBA, Mr Cobra, Mr Nehru and Mr BGurd_See that the only rational for this project was money laundering. 

HEHEHE What did you expect Badal to say. Did Mr Badal attended Graduate School???? EH/  EH??

My family knows Mr Badal very well. He did go to graduate school. He is not Soviet trained or fake trained at green tea. 

So a High Scholl Drop out is advising us on Finance. Lad Ah mercy!!!

The man gat more monnney tahn u do.

I don't doubt that. I know you would love to have Donald Trump as US President. You cant help yourself thinking like that.

He at least attempted to illustrate his reasoning with some real world numbers. Why dont you do the same? But that would actually mean out arguing a high school drop out so you take the easy road out; standing on you silly behind and sniping as usual.

Danyeal, how would describe a perfect world? I insist there will never be anything perfect, or without complaints. It seems like you have all the answers. let's hear them! 

If you had not tempted Eve to eat the apple, we would have had a perfect world.  In a perfect world there would be no snakes.

I thought you said Eve didn't push the apple down Adam's throat.  

what the hell are you talking about? I have more answers than all of you because collectively you are a bunch of lazy bums.  Were you curious you would take some time to strengthen your belief systems by affirming the foundation on which it stands.

And dummy, one does not offer "Answers" to questions not asked. If you know what you know then you would at least offer some explanation as to why you know what you know ie there is no perfect world. I am not denying it.

Marriott would not even be able to cover interest cost – Robert Badal

-wants President to mount inquiry into project

“At 8.9per cent interest per year on Republic Bank’s syndicated loan, it would require US$2.4M ($480M) per year to cover interest payment, an amount that far exceeds the total profits of the entire hotel and hospitality industry in Guyana.”- Robert Badal

Once operational, Guyana’s proposed flagship Marriott Hotel would be hard pressed to even cover its interest payments.
According to businessman Robert Badal, the main principal in the Pegasus Hotel, figures being presented are showing why no investor was interested in putting their money in the project. The hotel is currently under construction in Kingston.

Robert Badal

Government is hoping that an internationally-branded hotel would attract international visitors but the project because of its very financing, costs and initial secrecy, has been meeting with objections from the Opposition and sections of the business community. But Government has persevered using monies from privatization deals to finance the project.
Badal said that with the hotel facing US$27M in proposed loans, it would not even cover its interest payments.

“At 8.9 per cent interest per year on Republic Bank’s syndicated loan, it would require US$2.4M ($480M) per year to cover interest payment, an amount far exceeding the total profits of the entire hotel and hospitality industry in Guyana.”
“Interest payment would be even higher considering that accumulated interest during the construction phase, at least 18 months, would have to be capitalized and added to the principal.”

Badal is basing some of his arguments on the feasibility study submitted to the media which “at last resort shows unrealistic assumptions.”
According to his letter, Government which has been pushing the project, assumes an average occupancy of 62 per cent and an average daily rate of US$150. “With the two major hotels, Pegasus and Princess with aggregate room stock of 380 rooms, running at below 50per cent annual occupancy, and secondary boutique hotels at less than 40per cent on aggregate of 274 rooms, where would the additional traffic come from to realize 62per cent for an additional 197 rooms which the Marriott is bringing?”
The return on equity which Mr Brassington is projecting, US$8M at 22 per cent return for the unknown investors and NICIL US$19.5M at 6.2per cent, would require additional profits of US$2.96M per year.
This would mean that the hotel would have to earn US$5.3M annually just to meet interest payments.

An artist’s impression of the Marriott Hotel.

Another major expense that will face Marriott is the electricity costs which account up 25per cent to 35per cent of revenue. Labour costs would take around 15per cent, with other direct cost and overheads another 15-20 per cent depending on occupancy.

“In the first few months of the Marriott these percentages would be even higher resulting in crippling operating losses with no cash flows being available to cover interest payments as this outfit would not even realize 15 per cent occupancy.”
Badal, who manages the Guyana Stockfeeds and has strong overseas ties, warned that the writing on the wall is clear…this would rapidly lead to bankruptcy.

“It is no surprise that no credible investor showed any interest in this project. Those that deliberately, fraudulently and openly seek to deceive this nation must be swiftly brought to justice.
Mr Winston Brassington and those behind the scene to whom he reports are reckless with taxpayers’ resources. This is nothing but an indecent assault on the private sector and fraud on the taxpayer.”
The businessman called on President Donald Ramotar to mount an inquiry into the project and do so “without delay”.

Government, through the National Industrial and Commercial Investments Limited has gone ahead with the project despite strong objections from the Parliamentary Opposition which said that it was never consulted. In addition to questioning the costs, there was also anger over that fact that the money being spent has not been blessed by the National Assembly.
Government is hoping to complete the 197-room hotel, which will boast a casino, nightclub and restaurant, by next year August.

What we have to be cognizant about is that Badal will have to lose his fleabag hotel once the Marriott comes online. He has a vested interest in seeing the Marriott fail. That is why we see the pedophile crew led by Mitjuanita and second by Redunce continue to preach doom and gloom about the Marriott. I look forward to spending a week there at 150 - 200 US a night. If I can go all over the world and spend up to 500 to 1000US a night at resorts 200us in Guyana is not going to break the bank. ahhahahaha 

You are an incorrigible liar. You don't stay at hotels. You impose on aquaintances. Friends and families don't want anything to do with you because of your BO and big goadee which is infested with fleas and ticks.

Please do not doubt Mr. Robert Badal's academic credentials. I taught Mr. Badal the ACCA (Chartered Association of Certified Accountants) in the mid 1980's at my school Georgetown School of Accountancy. He completed the ACCA exams in 21 months, a rare achievement where others took about 5 years. The guy is naturally brilliant. After qualifying as a Chartered Accountant he went to Guyana Stores as the Internal Auditor, then moved on to Sterling Products as the General Manager at a very young age. After Sterling Products he went to Jamaica and worked for the international accounting firm, Price Waterhouse. In Jamaica he went to the University of the West Indies and got an MBA (Master of Business Administration). Badal subsequently purchased Guyana Stockfeeds Inc., National Edible Oil co. after the privatization, established PopEyes Fast food, set up the most modern rice mill in Guyana, bought the Pegasus and many other ventures to numerous to mention here.

Mr. Badal should be treated with respect by all Guyanese regardless of their political opinions. He is simply the best entrepreneur Guyana has ever produced because he started with nothing and did not inherit any business empire.

Although Badal is so rich, he is still a grassroot person and would have a beer at the street corner shop and play pools at Buddy's Pool Hall unlike other businessmen. He donates a lot to charities. So guys, show some respect to man who provides employment to nearly 500 people in Guyana.

Balwant, Thanks for the Update. Things do get hot around here from time to time. I am sure Mr Badal don't even know this Site exists.

Thanks for sharing this Mr Persaud. I did not know all of this. Mr Badal is a great man indeed. He built his empire without government subsidy like Mr Ramroop and Mr Jagdeo. Mr Badal is a indeed a role model. 

Hi Mr. JB,

I should have also mentioned that Mr. Badal whilst working and studying for his MBA was also exporting coconut oil and rice to Jamaica and some other Caribbean countries. The man was a hard worker. He used to use my facilities at another school I had, Computer Training Centre to handle all his documentation. Mr. Badal took large loans from banks in Jamaica and Guyana. People should not criticize a successful man for the sake of criticism and for political selfishness. Mr. Badal should be an example for all budding entrepreneurs in Guyana. His life and work should be a Case Study for all business students.

Absolutely he should be respected. And as an Educated Businessman he should know that Competition is good for Commerce. I will leave it at that.

You are a fool if you believe competition against the government is fair. Marriott is a government project, right?

Hi Nehru

Badal does not know this site existed. He is not even on Facebook. In fact he does not have time for the Intenet except to conduct his business. Badal is my personal friend since 1982. He has said many times he has nothing against the Marriott Hotel but it must be built with private investors money and not tax payers money. When the Princess hotel was constructing, many people said it was the death knell for Pegasus but Pegasus retains their clientele. The Marriott will have their own clientele and so the Princess and the Pegasus.

NO, it is not.

 Cheap alcohol is not good for the brain.

You need to start at ABC then come back.

Interest payment would be even higher considering that accumulated interest during the construction phase, at least 18 months, would have to be capitalized and added to the principal.
The feasibility study submitted to the media at last resort shows unrealistic assumptions. It assumes an average occupancy of 62% and an average daily rate of US$150. With the two major hotels, Pegasus and Princess ( with aggregate room stock of 380 rooms) running at below 50% annual occupancy, and secondary boutique hotels at less than 40% on aggregate of 274 rooms, where would the additional traffic come from to realize 62% for an additional 197 rooms which the Marriott is bringing?

As usual, we don't expect you to be relevant. Whah de ass your retort has to do with the discussion at hand?

Yes I remember Mr Badal saying that. 

He must owe alot of money and have some extremely good connections with the Banks.

As you know there are five parts to the balance sheet. What matters in high leverage are Cash Flow and Liquidity. Rober Badal has proven his worth as a buisness man.

Regardless of the position of Mr Badal, the fact is the Govt has no business in building hotels.  The Govt should focus on national infrastructure, both physical and legal, security and building an environment of trust and transparency which makes it attractive for business to want to invest and compete.

This is the most sensible thing I've seen you posted here. I mean it.

It is with great interest that I read your account of Mr Badal's rise to from rags to riches, almost like a fairy tale come true. But as we all know this is not reality. Mr Badal's academic credential consisted of a bottom house education while many of us went to the finest universities in the West. Notable is that after a stint in Jamaica(one of the drug capitals of the world) he suddenly had access to large amounts of money to purchase industry in Guyana. But also notable is the fact that back then there were no money laundering laws to determine the source of collateral that allowed Mr Badal to be credit worthy enough for banks to loan him large sums of money.  It is too incredulous to accept that a lowly accountant can suddenly become a real estate mogul in such a short time without assistance from the wealthy or those with questionable wealth. hmmmmm

Baseman was never in support of the Govt and Hotel and neither do I support the Govt being involved in commercial competition with the private sector.  The Govt's involvement in commerce should be limited to seeding some strategic initiative with a plan to exit and hand over to the private sector.  This has always been my core principle

However, baseman does not "currently" support the PNC over the PPP due to these errors and shortcomings.  The PNC is "still currently" an existential threat to democracy and human rights in Guyana.

Reason has totally abandoned you. Intelligence sees you as an anti-body. Ignorance sees you as an oasis

I have to agree, how come a staff accountant suddenly accesses the capital to purchase such large enterprises.  Something just does not add up.

Interest payment would be even higher considering that accumulated interest during the construction phase, at least 18 months, would have to be capitalized and added to the principal.
The feasibility study submitted to the media at last resort shows unrealistic assumptions. It assumes an average occupancy of 62% and an average daily rate of US$150. With the two major hotels, Pegasus and Princess ( with aggregate room stock of 380 rooms) running at below 50% annual occupancy, and secondary boutique hotels at less than 40% on aggregate of 274 rooms, where would the additional traffic come from to realize 62% for an additional 197 rooms which the Marriott is bringing?
The return on equity which Mr Brassington is projecting, US$8M at 22% return for the unknown investors and NICIL US$19.5M at 6.2%, would require additional profits of US$2.96M per year

PPP trained???

The only thing you would understand that adds up is Ignorance + Bias = BaseBoard.

I know, an accountant can be very "creative".  Just going on what the the man wrote.  Maybe he missed out something, like the man won a lottery or his father left him a fortune.