US$40M Hilton hotel to generate over 200 jobs

- project summary

An artist’s rendition of the front entrance of the Hilton Garden Inn and Homewood Suites
An artist’s rendition of the front entrance of the Hilton Garden Inn and Homewood Suites

The project summary for the planned US$40 million Hilton-branded hotel at Houston that will see over 150 local construction workers hired to build the facility and an additional 70 persons hired full time once it is up and running.

According to the summary, which has been released by the Environmental Protection Agency (EPA), the Hilton Garden Inn and Homewood Suites will see a 289 key hotel built near the Houston Guyana Shore Base Inc. (GYSBI).

Addressing local content, the summary states the development of the Hilton is expected to employ 150+ locally sourced construction workers, with an additional 70+ locally sourced employees required to run the completed hotel. It adds that around US$10 million is expected to be spent across 25 local contracts during development

One of the hotel’s principals is Lars Mangal, of TOTALTEC Oilfield Services and who is part of a partnership with the GYSBI consortium.

The project summary describes him as coming with “28 years of experience in the international oil and gas industry while working with Schlumberger and Welltec.” He is now CEO and Chairman of TOTALTEC Oilfield Services.

In a statement, Mangal had said, “This will be a great addition to Guyana, boosting the development of local capacity in support of its indigenous oil and gas sector along with offering additional room capacity to serve the tourism sector.” He added, “Our development will not only create jobs in the construction sector but also create several opportunities for plus 25 Guyanese contractors and suppliers to be involved in another world class development for Guyana. We will see investments being made in the training and development of staff to serve in hospitality and catering departments as the construction phase nears completion on this fast track development concept.”

This newspaper understands that EPA permission was granted for the construction, as no Environmental Impact Assessment (EIA) was needed for the construction. “Hotels, for example are standard construction and do not require the detailed studies of other projects, such as a road passing through swamps or a forest, the laying of pipelines as in the case of the gas to shore project…and those sorts of first time or ‘unknown’ projects,” former Director of the EPA Dr. Vincent Adams had told the Stabroek News.

“A lot of the requirements are subjective and not quantitative. But you look at risks of the project assess. Hotels, as I said before, are standard construction and where it is built,” he added.

Central Housing and Planning Authority, City Hall and the Fire Department permissions are also needed and will serve as a guide to construction oversight codes.

According to the project summary, “The Hilton Garden Inn and Homewood Suites development will … also support an additional 19,000 sq. of commercial space, restaurants, bars, meeting rooms, as well as a gym and a pool”.

The summary states that the development partners have acquired the rights to purchase the three acre development site, and have received outline planning permission.

The Miami based RAD Architecture has completed full architectural renderings for design and construction of the hotel. “RAD has designed several hotel and hospitality projects across the Caribbean,” the document states.

In addition, companies Americaribe and Deluxe Modular are both tendering for construction of the project, having submitted fixed price proposals for construction and development of the hotel. “Both companies have extensive construction experience in the Caribbean,” the summary states.

Explaining financing for the hotel, the summary states that equity investors for the hotel, “leading European and Caribbean investment firms, have committed to funding the project (subject to finalization of debt financing).  Debt financiers are completing their final stages of due diligence.”

In November of last year, three months after the PPP/C took office and following a call by the Irfaan Ali government for expressions of interest, a deal for the construction of Hilton Garden Inn and Homewood Suites Hotel was announced, along with three other hotel projects.

Guyana’s Office for Foreign and Local Investment (G-Invest) and the Ministry of Commerce signed Memoranda of Understanding (MoU) with the representatives of each of the four chains.

Head of G-Invest Peter Ramsaroop had subsequently told this newspaper that the developers of the Hilton Garden Inn had already received the requisite approvals to begin construction, as he underscored local content commitments.

Key management

The project summary gives profiles of its “Key management” personnel.

They are: Jonathan Murphy, who the document says comes with 12 years of experience investing in, managing, and developing real-estate. “Jonathan is a Director of Portland JSX, a US$300 million private equity fund focused on investing in the Caribbean and Latin America.”

There is also Darren Law, who brings “25 years of experience in global hotel and resort management and asset management. Darren has managed resort developments in North America, the Caribbean, and the Middle East, including Santa Barbara Beach and Golf Resort and a US$1.5 billion luxury resort in Riyadh, Saudi Arabia.”

Others include, Eric Hertha, who is said to have 30 years of experience in the international hospitality industry. “Eric has worked with brands such as Fairmont, Sheraton and Wyndham, and was previously Senior Director of Operations Finance at Hilton, while overseeing the centralization of Hilton’s Caribbean back-office and development of a 503-key hotel development in Sao Paulo, Brazil,” according to the project summary.

Venture capitalist Neil Passmore is another on the management team and he, the document says, has 15 years of experience in the global capital markets. “Neil has raised over US$30 billion in capital and is now CEO and Co-Founder of Hannam & Partners, a FACE authorized, natural-resources focused investment bank based in London.”