Hilton spend justified

Parliament today stamped its approval on a $12 million guarantee to enable the Hilton Barbados Resort to complete its ongoing $22 million refurbishment.

Minister of Tourism Richard Sealy told the House the investment was well justified since the property was making a profit and a sound contribution to the island’s tourism product.

“In 2016, the income from the hotel to the Government of Barbados was $2.4 million. That was an increase of 56 per cent over 2015. So in essence the hotel is making money, it is registering a profit,” he boasted.

Sealy revealed that the hotel operated by Needham Point Holding Limited had used $10 million of its own money to fund the improvements but needed the additional $12 million to complete the project.

“We are at that stage where we are deep in the First Citizens loan fund and while they will extend the arrangement on the basis of a Letter of Comfort signed by the Minister of Finance, we need to tidy up this situation because we have the last set of refurbishing to do and we wouldn’t want to be in breach of either the banking rules or indeed how Government should operate with respect to guaranteeing loans of Government entities.”

With the renovations, Hilton’s room stock has increased from 300 to 355.

Last year, 115 rooms were refurbished, another 139 were completed this year and the remaining 100 will be done next year.

16 Responses to Hilton spend justified

  1. Michael Pereira
    Michael Pereira December 7, 2016 at 7:16 am

    Hilton needs your money and you’re going to give it? Hilton? This organization has more available finances than Barbados. What next. Almond Beach holdings need money too. Use the money to fix more pressing country problems .

    Reply
    • Rawle Spooner
      Rawle Spooner December 7, 2016 at 7:25 am

      Agree with ya but these garbage politicians just don’t care.

      Reply
  2. Rawle Spooner
    Rawle Spooner December 7, 2016 at 7:25 am

    Is Hilton own by taxpayers or the taxpayers just subsidizing it like they always do with every private own company.

    Reply
  3. Michelle Griffith
    Michelle Griffith December 7, 2016 at 8:35 am

    I am sick and tired of these buffoons,why are they investing taxpayers money in the Hilton when there are other things in Barbados that needs urgent fixing and dealing with that this money can go to,for instance go build a school for Combermere students,go fix the sewerage problem on the South Coast,go fix the QEH,fix the bus terminal,buy buses that persons can have proper transportation,pay workers,clean up the island etc.
    Where is the taxpayers money that was invested if four seasons,down there is like a jungle,you got your priorities mix up,a bunch of incompetent fools.
    Can someone explain this move to me I am a bit confused.

    Reply
  4. Jennifer December 7, 2016 at 10:22 am

    @Michelle Griffith – totally agree. Cent wise and dollar foolish. No western country does this nonsense. Let them take their yacht and plane money and fix it. We as a black people own absolutely nothing and don’t tell me you own a house and car, cause if the bank ain’t own it just get a match and an accident for it to be gone. This is why i say that these colonialist still control our leaders to the core. Roads wash in large potholes mashing up your vehicle and the holes getting bigger and new ones being created from the god given rain, while they patching the roads they use.
    They can’t clean the mess in their own backyard of their people but cleaning the mess of their oppressors. While they back account getting fatter by the day from their other subsidiary companies. Got to be house negros at the helm.

    Reply
  5. Jennifer December 7, 2016 at 10:24 am

    bank accounts

    Reply
  6. Jennifer December 7, 2016 at 10:30 am

    This nonsense is what happens when politicians are educated by their oppressors school system and well assimilated and indoctrinated. They become led by the collar. This is so sad indeed

    Reply
  7. SAM CLARKE December 7, 2016 at 11:16 am

    SO IF THE PROJECT IS MAKING MONEY, WHY WOULD THE PRIVATE BANKING SECTOR NOT GIVE THEM A LOAN OR GUARANTEE IT?
    THE ANSWER IS NO.
    SO NOW THE TAX PAYERS OF BARBADOS MUST BE SADDLED WITH HILTON HOTEL’S LOAN?
    THIS IS THE MOST INEPT GOVERNMENT THAT BARBADOS HAS EVER HAD.
    ENOUGH OF THESE NINCOMPOOPS .

    Reply
  8. Ralph Talma December 7, 2016 at 11:33 am

    1. A ‘Government entity’. a. Does this therefore mean the B’dos Government has ownership of part or all of the hotel? b. Is the money a loan, if so, what interest is being charged thereon?
    2. I am still confused by para 5 above.

    Reply
  9. jrsmith December 7, 2016 at 12:36 pm

    @, Ralph T, hail, hail, good shot must add ,is there going to be transparency in this matter, or this would have no paper trail as like most of the 100s of millions which was never audited or accounted for in the (AUDIT GENERAL’S ) report …..
    We in barbados definitely needs a (Donald Trump) … you have no real chance to corrupt him…thats why black people dont like him ……..

    Reply
  10. Hal Austin December 8, 2016 at 4:14 am

    Further evidence that this government is out of control. First, they bulldozed a relatively new hotel to build another one; then within a short period they want a Bds$12m refurbishment. That is money that can be much better spent. We have great houses that are hundreds of years old.
    Most important, what is the government doing in the hotel business? The role of government is to be an enable, to facilitate business people through regulations and supervision, not funding. As social policy it is madness.
    In purely financial terms, the Hilton should be able to go to the markets to raise the $12m, based on its trading books (has the Hilton been profitable?), the market value of the business as a going concern, or of the commercial value of the property.
    Running to the government for a handout is simply reinforcing the notion of politicians as Godfathers.
    The other important issue of course is which construction company gets the contract. There is a growing suspicion that contracts are given to favoured businesses and this must be monitored very closely by the Opposition, unions, the media and the general public.
    This is one of the processes of transferring wealth from the poor to the wealthy, from taxpayers to Scandinavians who hit gold when they moved to Barbados.
    At a time of belt tightening this government is still spending money like it is going out of fashion.
    Further, government has conflicting policies on its vast portfolio of hotels. How does the Hilton stand in relation to Four Seasons and Gems?

    Reply
  11. Sheron Inniss December 9, 2016 at 9:51 am

    I thought the governments role is to facilitate growth, not fund businesses. This is asking too much. I still trying to figure out what the elaborate 50th celebrations was all about. If the rain fall too hard you have to hire a taxi to get home ’cause no bus available and a whole litany of woes. It makes you want to hold yuh belly and bawl.

    Reply
  12. Haskell Murray December 9, 2016 at 9:59 pm

    Haskell Murray
    December 7, 2016 at 11:45 am
    It was the Arthur government who knocked down the old Hilton and built this new one which I don’t think is 20 years old yet, therefore why the refurbishment?
    As I understand it the government owns the building and the Hilton Hotel International owns the operations and therefore all operating cost. Now this refurbishment cost is Hilton Hotel International cost and will be recorded on their books as a capital cost and amortized over a number of years and then they will get a tax deduction for the annual amount amortized. Now look at this the government is on the hook for 12 million and the Hilton get a tax writeoff for 22 million . Does this make any sense. What these international business men know is that the politicians are not trained in high finance and they take advantage of the politicians running the governments all in the name of jobs and votes.
    The government to rescind the 12 million guarantee and let Hilton International pick up the full cost .
    I am sure that there are trained accountants and tax specialist working in the government who should be giving the government the advice I just gave for free.
    Richard Sealy you just confirmed what I said

    Reply
  13. Walmark John F December 10, 2016 at 4:56 pm

    That money would go a long way in fixing the south coast sewage plant and stop the damage to the pristine Worthing Beach . That’s an asset that Barbados owns and should protect . HIlton? What are you thinking ? Hilton is a huge international conglomerate and why is barbados giving them 12 million? I don’t get it

    Reply
  14. Walmark John F December 10, 2016 at 5:00 pm

    HILTON INTERNATIONAL HAS REVENUES OF 11.4 BILLION DOLLARS IN 2015!!!!
    and Sealy gives away 12million barbados can use itself .
    SHAME .

    Reply

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