Cara Inn to close doors this year
--Owners cite escalating operating costs
January 9, 2004
Cara Hotels has signalled its intention to close down Cara Inn, its Pere Street, Kitty, Georgetown branch this year after failing to reach agreement with the Russian Embassy on a survival plan for the entity. Cara Inn is housed in the complex of the Russian Embassy.
Directors of Cara Hotels, Messrs Shaun McGrath and Paul Stephenson, took this strategic decision in December last year as part of an overall business consolidation and rationalisation process.
The closure of the hotel will result in the loss of 32 jobs and will take effect on February 8, 2004.
“We would be concentrating more on property ownership and the management contract side of things, and less on property rentals for the foreseeable future,” McGrath said.
However, if the opportunity arises for ownership or a management contract on suitable property in Guyana, Cara Hotels will very seriously consider that option, he said.
Cara Inn occupies premises leased from the Russian Embassy. According to McGrath, “This type of arrangement significantly reduces flexibility and restricts options for adjusting to other factors which affect the hotel’s performance.”
McGrath said that the rapidly increasing operating costs linked to the rising costs in the supply of electricity, coupled with the stagnant (and possibly declining) socioeconomic environment in Guyana have contributed to the owners’ decision to close.
“We have looked at the property and the problem from all different angles, and we have considered and suggested a number of potential solutions to the situation. But none seems to be acceptable and workable to the Russian Embassy administration and a long term solution,” he explained.
McGrath added that despite this decision to close Cara Inn, Cara Hotels remains committed to Guyana through its operation of Cara Suites and Cara Lodge, and to the expansion of hospitality facilities and services here. (Jaime Hall)