The Government has moved to take ownership of the Hilton Trinidad and Conference Centre.
Minister of Land and Legal Affairs Saddam Hosein said the new arrangement replaces the previous landlord-tenant relationship with a hotel management agreement.
“Previously Hilton and e TecK operated between a landlord-tenant relation, e TecK being the owner of the hotel and the lands that were sublet to e TecK from the State, and then e TecK would have then assigned its interest to Hilton, and Hilton operated the hotel and so on. That arrangement has now moved to where e TecK is now remains the owner, there is no more lease arrangement, but Hilton is managing the hotel asset, so they are now what we call the operator. So the brand remains, the employees remain, we can open up the entire reservation system now, and we move towards a hotel management arrangement rather than one of landlord and tenant.”
Minister Hosein said the decision was necessary to ensure Trinidad and Tobago retains the Hilton brand and the hotel accommodation needed to meet growing demand.
He added that the period will also allow Government to address outstanding property improvement works while determining the best long-term approach for the State-owned asset.
“With respect to the matters of the property improvements and so on, those are the matters that will come up for further discussions within the six-month period, and therefore you would also see that there is another six months period that can be in fact agreed on by both parties. So it’s really six months plus six months which will take us to a one-year period.”
With Hilton proving profitable, the new arrangement also brings reassurance for hundreds of hotel employees, who had faced uncertainty over the future of the hotel.
“I hope that the employees are comforted. I know there was some uncertainty because some believed that Hilton was going to leave our shores this month in September. As a government, we have been in active negotiation. I can speak for when I became the Line Minister of e TecK this was one of the first things I have dealt with in terms of getting a briefing from the board and we’re both sharing ideas and direction going forward. I think at this time, the workers can rest comfortably knowing that the government at this time is working in the best interest of the country and the workers.”
The Communication Workers’ Union is also being kept informed as the transition takes place.
“Today, the CWU received a letter. On Monday, I am told that there is this town hall meeting with all of the employees of the hotel at the hotel’s compound. So the workers are being kept abreast of this entire matter as we speak. As soon as the media release was issued, the union was notified today and on Monday, they will have a town hall meeting.”
But while the future of the Hilton has been secured, the condition of the property remains a major concern.
The Minister said Government inherited an asset with only about half of its room stock currently usable, leaving the administration with the task of finding the resources needed to restore the hotel.
“I was very disheartened to know that when I inherited the e TecK, under the former administration, that, if I’m not mistaken, that at this point in time, we only have about 50% room stock because the other 50% of the rooms are unusable. This was what was left for us as an administration. And now we have to now find the money, find the resources to bring this asset back.”
Government will therefore use the initial six-month period to undertake emergency works and begin upgrading rooms to meet Hilton’s international standards.
The improvements are expected to support the guest experience, strengthen the hotel’s ability to accommodate visitors during peak periods and help preserve the Hilton as a major part of Trinidad and Tobago’s hotel stock.
Further discussions on the property’s long-term improvement and future will continue during the period.