After an eight-year wait, construction of a new Hyatt Hotel is set to commence this year, with its opening slated for 2026. This development is part of a significant US$100 million ($200 million) financing agreement that prominent businessman Mark Maloney has arranged with the African Export-Import Bank (Afreximbank).
Out of the total, US$90 million ($180 million) is allocated for building the hotel, while a trade finance agreement worth US$10 million ($20 million) will connect Maloney with Africa’s wealthiest man, Aliko Dangote, to import cement-making materials for his company, Rock Hard Cement. Dangote Cement is the largest producer on the continent.
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The agreements were finalized at the Baha Mar Convention Centre in Nassau, during the second day of Afreximbank’s Annual Meetings and AfriCaribbean Trade and Investment Forum. Gwen Mwaba, Afreximbank’s director and global head of trade finance, represented the bank.
Maloney explained that his company had been collaborating with Afreximbank on the $330 million (US$165 million) Hyatt project, with the bank agreeing to lead on the debt side for the construction of the Bay Street hotel.
“This will be a springboard for major developments in the hotel industry in Barbados,” Maloney said. “Banks have been hesitant to finance new projects, but this deal should demonstrate confidence in lending to such initiatives because of Afreximbank’s substantial backing.”
Construction is expected to begin within a few months, with completion anticipated in 18 months to two years.
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The journey for this project began in July 2016 when Hyatt Hotels Corporation announced a management agreement with Vision Developments Inc. for a Hyatt Centric hotel at Carlisle Bay, originally expected to open in 2019. In May 2020, the project transitioned to the Hyatt Ziva all-inclusive resort brand, aiming for a 2022 opening with 380 guest rooms, 40 condominiums, and six premier rooms.
The trade finance facility will aid the expansion of Rock Hard Cement in Barbados and Guyana. Maloney highlighted the strategic importance of regional manufacturing and the potential partnerships with Afreximbank’s other clients, including Dangote Cement.
Afreximbank president Benedict Oramah emphasized the significance of the deal, noting that it represents a shift in sourcing raw materials from Europe to Africa. “This facility will enable Maloney Group to source clinker from Dangote Cement, fostering regional trade and economic growth,” Oramah said.
Maloney praised Afreximbank for its willingness to fund new projects where local banks have been hesitant. He stressed the need for regional cement manufacturing to meet growing demand, particularly in burgeoning markets like Guyana.
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“Guyana is currently a booming market, akin to Dubai,” Maloney noted. “We need robust industry support, and financing is crucial to building the necessary infrastructure.”
Barbados consumes around 90,000 tonnes of cement annually, a figure that is expected to rise with upcoming projects such as Pendry Hotel, Sandals, and Royalton, which will collectively add over 700 new hotel rooms to the island’s inventory.
Maloney expressed hope for economic stability and the fruition of public and private sector efforts to facilitate investment. “Barbados has the potential to be the Caribbean gem, attracting businesses like Afreximbank to the region,” he concluded.
Source: Barbados Today
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