US, Marriott partner to build sustainable hotels in Africa, other regions
The United States’ Overseas Private Investment Corporation (OPIC) and Marriott International on June 18, 2012 announced a partnership at Rio+20 to support new environmentally-sustainable hotel development in growth markets in the Middle East, Africa, Latin America and the Caribbean.
The partnership stands to generate millions of dollars in OPIC financing for Marriott hotel projects internationally.
According to a Memorandum of Understanding (MoU) recently concluded between the two parties, OPIC will make long-term loans to the third-party owners of the hotels, with Marriott providing hotel management or franchising services under separate agreements.
OPIC in a statement said it will design a streamlined loan approval process and loan terms which can be modified based on local conditions and regulations adding that “OPIC financing for the hotel projects could reach up to $200 million in total”.
It indicated that the loans will be available to hotel owners to fund projects across Marriott’s 14 lodging brands, including Marriott Hotels & Resorts, Courtyard and Fairfield.
Each hotel project will be evaluated on its own merits and approved according to regular OPIC due diligence procedures, the US agency stated.
The OPIC-Marriott partnership is expected to jump start sustainable hotel development in emerging markets where water and energy resources may be limited.
By Ekow Quandzie