The Government Employees Retirement System board of trustees granted Marriott Renaissance Carambola Beach Resort a 90-day, $736,000 loan Thursday to complete renovations on 54 of the total 144 rooms at the resort, according to GERS. The vote was taken during the GERS board’s regular meeting Thursday, GERS Administrator Austin Nibbs said in a statement after the meeting.
Getting the remaining 54 rooms renovated will ensure Carambola retains its status as part of the Marriott brand, said Nibbs.
The new, short-term loan is in addition to a $15 million, five-year GERS loan to Carambola, closed in December, 2009. Of that loan amount, $8.2 million went to purchase existing bank loans and judgments and pay off liens and closing costs, and the rest paid for renovating the property to meet Marriott standards, according to GERS. Payments are annual, at an interest rate of 10.5 percent.
This new loan is to finish up the renovations so the rooms are up to Marriott standards, according to GERS. Once completed, the rooms can be rented and begin bringing in more revenue.
As part of the original loan agreement, once the rooms are completed, Marriott will repay the loans, according to GERS.