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Summary of Project Information (SPI)

This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Project number11671
Project nameMarriott Courtyard - Port of Spain
CountryTrinidad and Tobago
SectorCity and Business Hotel
Department
Company nameCHTT
Environmental categoryB
Date SPI disclosedMay 13, 2003
Projected board dateJuly 10, 2003
StatusCompleted
Previous EventsInvested: May 5, 2004
Signed: February 11, 2004
Approved: December 12, 2003

Description of company and purpose of project
The Project entails the construction and operation of the 124-room Marriott Courtyard Hotel in Port of Spain (POS), the capital of Trinidad & Tobago (T&T), by Caribe Hospitality of T&T (CHTT). Demand for business lodging has grown in recent years as a result of significant investment in Trinidad and should continue to increase with new developments in the natural gas sector and other positive economic indicators. Marriott International will operate the hotel under a Management Agreement and will provide technical assistance in the design and implementation phases.

Project sponsor and major shareholders of project company
Caribe Hospitality of Trinidad & Tobago Ltd. (CHTT), the project company, was incorporated in 2002 as a joint venture between Caribe Hospitality S.A (CH) (60%), Mouttet Capital Ltd (30%) and Poui Holdings Ltd (10%). The purpose of the company is to develop the POS Courtyard hotel.

Caribe Hospitality S.A. was incorporated in Panama for the sole purpose of developing and operating small business hotels in Central America and the Caribbean to be managed by Marriott under its Courtyard brand. The intent is to partner with local sponsors for individual hotels on a joint venture basis. Shareholders in Caribe Hospitality are Ramiro Ortiz, Edgar Zurcher and John Keith.

Local sponsors in this project are Mouttet Capital Ltd, a wholly owned subsidiary of Victor E Mouttet Limited (VEML) established in Trinidad in 1958, and Poui Holdings Ltd., a shell company that is owned by Joseph Esau, a Trinidadian national.

Total project cost and proposed IFC investment
Total project cost is estimated at $11 million. IFC’s proposed investment comprises an A loan of $1.6 million and a C loan of $2.0 million with an income participation feature.

Location of project and description of site
The POS Courtyard will be located in Invaders Bay, about a mile from the downtown area of the city and across from Hasley Crawford Stadium. Invaders Bay is a former swampland which was filled several years ago by the government to address the need for additional land in Port of Spain. Completed developments in Invaders Bay thus far include a port, PriceSmart and the MovieTowne complex which includes restaurants and shops.

Project Development Impact and IFC's Role
The Caribe Hospitality concept has an important development impact in demonstrating that regional investment schemes with cross border capital can be successfully implemented in Central America and the Caribbean. Through CH, local and regional investors are able to expand and diversify their business interests. Ultimately the establishment of a chain of business hotels in this area will support regional trade and business development with a network linked by common management and onward reservations, and providing services of known quality and range.

More specifically the POS Courtyard will:
- provide additional hotel rooms which are clearly needed as part of the country’s basic business infrastructure;
- introduce high standards in life and fire safety, energy and water conservation, etc., which should encourage similar upgrading by other hotels;
- support a near downtown urban hub that is becoming an important location for modern retailing and social activities;
- have strong linkages with T&T’s construction and building supply sectors during construction. Once operational, the project will stimulate local supplies of goods and services used by the hotel and its guests;
- provide direct employment for some 60 workers once the hotel is operational and many more jobs will be created indirectly. Hotel employees will benefit from Marriott’s training programs, promotion practices and overall high service standards.

IFC’s most important role is the provision of A and C loans with long tenors and grace periods to match market and project risks. IFC has also provided valuable input regarding the Management Agreement and the land lease agreement. In the future IFC may pursue additional CH hotel investments and we can continue to valuable input to improve the viability of CH by ensuring that future hotel projects undertaken are justified on a market basis, that management agreements with Marriott are equitable, that project costs are reasonable and that the financial structures for individual projects are sound.

Environmental and social issues - Category B
This is a category B project according to IFC’s Procedure for Environmental and Social Review of projects. The environmental, health, safety and social issues associated with this project are described in the Environmental Review Summary.

To view the environmental documents for this project, click here


Location of environmental documents in locally affected community
An advertisement will be placed in Express newspaper in Trinidad. Documents will be posted at NLBA Architects Ltd., 36 Carlos Street, Port of Spain.

To contact the project company, please write to:
Mr. Daniel Campos
Capital & Advice
San Jose, Costa Rica
Phone: (506) 288-4701
Email: Daniel.campos@capitalandadvice.com

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