-hotel breaks with Starwood, Le Meridien brand
A new management team takes over the operations of the Pegasus Hotel, which officially severed ties with the Starwood chain of hotels and resorts.
As a result, the hotel will no longer carry the ‘Le Meridien’ brand, owned by Starman UK Services Company, and would now be known simply as the Pegasus Hotel. An announcement posted on the Starwood website yesterday confirmed the withdrawal: “Le Méridien Pegasus Guyana will be leaving the Starwood system on November 25, 2008. Reservations for dates on or after November 25, 2008, will not be eligible for Starwood Preferred Guest membership benefits, award redemption or accrual.”
No more Le Meridien: It’s just the Pegasus Hotel as of yesterday. The hotel, which had been managed by Starman UK Services Company, a joint venture between Starwood Capital and Lehman Brothers Holdings, is now under new management. (Composite photo by Jules Gibson)
The hotel had been managed by Starman UK Services Company, a joint venture between Starwood Capital and Lehman Brothers Holdings.
But it is unclear whether the change in management has anything to do with the sale of the hotel though reports have circulated for months about a local businessman, Guyana Stockfeeds owner Robert Badal, indicating an interest in purchasing it.
A share purchase agreement for the sale of the hotel was reportedly executed some time last month, between an overseas-based company, of which Badal is the principal and Starman. Bert Plas, now former general manager, previously confirmed that discussions for the sale and upgrading of the hotel were underway but stopped short of saying there had been a deal. Shortly afterwards, Badal had indicated to Stabroek News that a group of businessmen out of Miami had signed a letter of intent with the owners of Le Meridien Pegasus for the purchase of the hotel but he had said that no deal was concluded.
Badal, who introduced the Miami businessmen to the owners of the hotel, Starwood Hotels and Resorts, explained that he had met the businessmen out of Miami who were interested in the hospitality industry and he introduced them to the owners of Le Meridien Pegasus. Two directors of the company had met the Miami businessmen for the negotiations.
Calls to Plas’ office yesterday, his last day at work at Le Meridien Pegasus, Guyana, went unanswered. This newspaper was also unable to make contact with Badal.
Government had ex-pressed its concern about the process for the sale of the hotel and particularly seemingly poor governance procedures. It also complained that no share transfer had been approved by the hotel’s board, though until now no one has definitively spoken out on the real status of the hotel.
In a statement last month, the National Industrial and Commercial Investments Limited (NICIL), which represents the National Insurance Scheme (NIS) on the board, said a representative of the Starman UK Services advised that the share purchase agreement was executed between an overseas-based company which Badal headed and Starman.
NIS as a minority shareholder was unaware of the reduction in sale price and the implications for its value, NICIL said, adding that the government would continue to raise its concerns and did not consider the matter closed.
Following newspaper reports, the government had written to Starman inquiring whether the hotel had been sold. It had noted too that the hotel rules required that any share transfer be approved by the board.
During the boom in the development of hotels back in April last year, President Bharrat Jagdeo had lashed out at Le Meridien Pegasus accusing it of making a ton of money, owning a monopoly on the market while having atrocious rooms and not reinvesting in the country.
“They kill the market and they take all the money abroad,” Jagdeo had declared.
Several hotels including the Buddy’s International Hotel were being built at the time and Jagdeo had said that this would significantly aid in the development of the fledgling tourism industry.
He had said too that Guyana had a limited number of good quality rooms–with most of them largely at Le Meridien Pegasus hotel in Georgetown–and this had limited its ability to host major international events and even meetings.
i wouldn’t even bother read this story……..the last time i heard about the hotel being sold a few individuals went on the T.V and said (or lied) that it has never happened and it will never, now look what we have here, it’s not like they will give me a free room for a year so the hotel being sold…..i really don’t care but you will still get the same good service as usual.
Good Service??? l was there for dinner recently and the service was the worst l received in long time, my friends and self left half of our meal untouched.
This can and will eventually get very complicated indeed. It is obvious that the business was robbing Guyana. But what about these new owners? Who are they? From what sources has the funds come? How can such a sale be done without the knowledge and collusion of all the stakeholders? Aren’t documents to be filed at the deeds Registry?
Soooo many questions………. Who has the answers???
woo.this is shameful that the president did not make sure guyana got its full share of this hotel now they are all laughing at us they make the money and now they are going to invest overseas sad
This is nothing new my friend; remember OMAI???????????????
Guys, this is a private business and the government has no business getting involved. The only way the government should get involve is if the broke a law and from what I am reading there is no transgression of the law. Talkout, what full share the Givernment should get? Did the gov’t ever invest into this company? It is the mentality of the Government and Guyanese that we are not attracting private investment because you guys and the government is paying lip service to private investment.
It is interesting to note that Mr Jagdeo lacks the characteristics of a true statesman by making off the cuff remarks towards an internationally recognized franchise hotel. He will soon reap the error of his ways when the Pegasus fails to live up to the high standards when his cronies take over. I guess it is just another day in Guyana, a third world country which continues on a daily basis to look more and more like the mediocre run country which it truly is.
the pegasus hotel has been tossed around so much it’s not clear who really owns guyana’s only premier hotel, and suprisingly the bankrupted lehman brothers also had a stake in it, so i believe they would want to get rid of the pegasus because they need the money.
Hope the new Pegasus owners/operators will uphold and improve on services.
A President needs to build up and not destroy.
A key guide ” to temper enthusiasm with restraint.”
Pegasus in her new glory, aside of the to be built Le Marriot, tourist and more tourist = $$&more$$..
Although he is correct regarding Pegasus, one has to wonder if Jagdeo conveniently forgets the slew of businessmen in Guyana who make a lot of money off of Guyana and then invests the majority of that money in business and pleasure abroad. Indigenous capital flight is synonomous with Guyana so why isn’t he castigating those Guyanese businessmen (the worst of the lot are the importers) who do exactly the same thing?
Why isn’t there a vehement outcry against those businessmen who import cheap goods to Guyana and sell them at ridiculous mark-ups to Guyanese and then take the capital to Miami to purchase real estate or to party there? Has there ever been a direct assault on these captains of industry to use their profits to start or propel the fledgling tourism or manufacturing industries?
You are right Durbie, the gov’t have no right to get involved.
Buddy’s was loaned millions of tax payers dollars to complete
his hotel, the gov’t need to let the guyanese people know if
the loan was repaid.