Arab International Hotels Limited (AIHC)

completed

Summary Of Project Information (SPI)Project NameJordan: Arab International Hotels Company (AHIC)Amman Marriott ProjectRegionCentral Asia, Middle East and North AfricaSectorProject No008858Projected Board DateMay 15, 1998Company NameArab International Hotels Company (AIHC)Technical Partner and/or Major Shareholders AIHC is a publicly listed company with a paid up capital of US$12.8 million. AIHC''s Chairman is Nadim Muasher, a prominent Jordanian businessman with interests in tourism, banking and textiles. The Muasher Group controls about 51% of AIHCs capital, the Jordanian government about 28% and the rest is owned by a number of private shareholders.Project Cost Including proposed IFC investment The total project cost is US$12.3 million of which the proposed IFC financing is the purchase of US$3.2 million in equity.Location of project and Description of site The project consists of the renovation and expansion of the Amman Marriott, a leading hotel located in the Shmeisani area of Amman. Description of Company and Purpose of Project The work comprises i) the complete refurbishment of all of the hotel''s 294 rooms; and ii) the addition of conference and banqueting facilities, a health club, retail space, movie theatres and an underground parking facility. The proposed expansion and modernization of the Marriott will boost the hotel to a 5 star international level allowing it to match the quality level expected to be provided by its competitors. Expansion of quality tourism facilities is needed in Jordan to accommodate current activity in the sector and future growth. The project would not only generate foreign exchange and create direct jobs -about 300 jobs during construction and about 200 new jobs once the project is complete- but is also expected to have wider economic benefits, such as increasing additional spending by tourists on goods and services outside the hotel properties. IFC’s main role in this project is to help raise the standards of hotel accommodation in Amman and help enhance confidence in the investment climate in this sector. Also, IFC will ensure that the project meets the World Bank environmental guidelines, thereby promoting environmentally sensitive development.Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure. Environmental, occupational health and safety issues associated wih this project include: water and power supply, treatment and disposal of sewage; waste/garbage management and disposal; CFC in cooling and refrigeration systems; and fire protection and life safety. The Sponsor has indicated his willingness to comply with all relevant Government of Jordan and local standards, as well as World Bank environmental, health and safety guidelines with regards to the project.      The is April 15, 1998 from the Public Information Center.Date SPI sent to PIC      April 1, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).