Hilton checks out of its Tobago hotel

Hilton International is getting out of Tobago. The chain announced Thursday that it will end its 10-year management of the company on May 15. The decision does not affect the Trinidad Hilton.

The government of Trinidad and Tobago announced on March 17 that it was going to buy the hotel, owned by Vanguard Hotels Ltd, “to prevent a collapse of the island’s economy.”

Dr Keith Rowley, who made the announcement, said the hotel was in a bad state of disrepair and suggested that unless the government took over the establishment the tourism industry would collapse.

He also said several airlines were considering pulling out because of the deteriorating condition of Tobago Hilton. But Rowley did not provide data to support his statement or explain why problems at just one of the island’s hotels would cause the collapse of the entire tourism industry in Tobago.

The hotel’s major shareholders include Evolving Tecknologies Enterprise Development Company (ETeck), which holds 47 per cent shareholding in Vanguard, Hilton International and Tobago Plantations Ltd, comprising Guardian Holdings Ltd and Angostura.

Vanguard Hotels Ltd.'s announcement said, “further to Government’s announcement to acquire full shareholding in the hotel and undertake significant repair works at a cost of $45 million, Hilton International has decided to terminate the lease agreement for the Tobago Hilton effective May 15.” The hotel will retain the Hilton brand until then.

“As of May 16, Vanguard or a new hotel operator will assume management for the property under a new brand which will be announced,” the statement added.

Vanguard said the hotel’s employees “will have the option to continue working for the property under the new management arrangement.”

The hotel says all bookings after May 15 “will be handled by the resort’s new operating management.”