Carmitel

The Carrasco Marriott Hotel project (the "Hotel" or the "Project") covers the restoration, refurbishment, and operation of a hotel in the residential neighborhood of Carrasco, Montevideo, Uruguay. The Hotel, ten miles from downtown Montevideo and four miles from the international airport, opened in 1921. It was built in the French "Palais Royal" style. The building, declared a National Historic Monument in 1975, stands out as a city landmark on the banks of the River Plate, and is an integral part of Montevideo's architectural heritage. The Project contemplates bringing the hotel in line with the five-star international standard, with 118 rooms and all modern amenities and services for business travelers and international visitors. The Hotel houses a casino owned and operated by the Montevideo Municipal Government (Intendencia Municipal de Montevideo). The Project Sponsors have signed a license and management agreement with Marriott Hotels International to operate the Hotel under the "Marriott" flag.

The proposed project is estimated to cost about US$20 million, of which the IIC would lend for up to US$6.5 million. Project implementation will begin in September 2001, with a view to opening the Carrasco Marriott Hotel by late 2003.

The role of the IIC in the proposed transaction is important for the following reasons:

It will promote foreign investment in Uruguay through long-term financing.

It will improve the quality of hotel services and the business infrastructure in Montevideo, through the new convention center.

The project will have a positive social and economic impact from various perspectives. It will create 90 direct jobs and 290 indirect jobs, and will give a boost to the construction sector during the initial years.