After experiencing a dip in revenue at the height of the COVID pandemic and in its immediate aftermath, the Hilton Barbados Resort has recorded an impressive year of profits, the financial controller of the state agency that owns the hotel has told lawmakers.
Finance Controller of the Needhams Point Holdings, Nigel Hall, told the House of Assembly during the Ministry of Tourism’s Estimates hearings on Monday, that the hotel, following the country’s own post-COVID economic turnaround, has bounced back in a big way.
“We are proud to report that especially since the impact of COVID, we have seen significant improvement in the returns and the operations of the Barbados Hilton, and certainly the holding company for the Hilton, Needhams Point Holdings. Coming out of the COVID pandemic we witnessed a significant fall off in business activity as all of the country would have recognised during that period of time.
“Since that time we’ve seen significant growth; although we were never fully shut down at the point in time, we have seen occupancies rise from the 30s, 40s, the 70s, and now we are projecting that they will fall just short of 80 [per cent] of the average year round occupancy for the property.”
He added: “As a company that owns the property and manages it, we have also seen a significant turnaround in the fortunes. We were able to move from a loss during COVID, and now we have been able to receive a profit in excess of $9 million for 2023, and it’s projected that as we go into the next financial year… the project will grow to $10 million, and possibly exceeding.
“I think it paints a picture that shows that the Hilton operation and Needhams Point Holdings has been a success story for the Government of Barbados. Not only were we financially profitable, but we were also able to maintain employment for the many workers, who are fortunate enough to be employed at that location.”
In support of the growth, Hall also said a feasibility study has also been conducted on adding more rooms to the 355-room property.
“The board of Needhams Point commissioned a feasibility study to see if it would make sense to expand the operations of the hotel on the grounds currently owned by the property. We were able to get a preliminary report on that study, and it has indicated that if we were to expand a number of rooms on that location, that it would be a very successful venture. That has given us the green light to explore options in further development on that location.”
Ian Gooding-Edghill, Minister of Tourism and International Transport, also voiced his support for the study, saying the government was also interested in supporting any feasible joint ventures with the expansion.
“The feasibility study will also dictate what I announced last year in the estimates, that we are seeking to build out opportunities under a joint venture arrangement with partners. Let us be very clear, the Hilton is owned by the people of Barbados, and the Hilton will remain being owned by the people of Barbados. But what we are looking to see is how best we can enter joint venture arrangements without Needhams Point having to incur even more debt.”
