Venezuela To Nationalize Hilton Resort On Margarita Island
CARACAS -(Dow Jones)- Venezuela moved to seize the Hilton resort on the
Caribbean island of Margarita, a swanky beach-side hotel which recently housed
Libyan leader Moammar Gadhafi and Zimbabwe's Robert Mugabe.
President Hugo Chavez ordered the nationalization of the resort, which is
owned by a local company facing troubles with the government's financial
oversight body. The resort, which is managed by Hilton Worldwide, has 280 rooms
and 154 time-share suites, according to the presidential decree ordering the
take over.
Chavez recently held court at the hotel as he welcomed more than 30 leaders
from South America and Africa for a summit in the island of Margarita. Among the
visitors was Gadhafi, who set up his emblematic and heavily guarded tent at the
hotel's private beach. Mugabe was seen walking through the hotel's halls
surrounded by a ring of bodyguards.
During the summit, Chavez joked that the government could nationalize the
hotel. A few years ago, the government seized a Hilton in Caracas, which it
rebranded Hotel Alba. Since then, the hotel has become a meeting point for
Chavez sympathizers from around the globe.
Karla Visconti, a spokeswoman for Hilton Worldwide, said the company "is
evaluating how the Venezuelan government's action affects its interest in this
hotel." She noted that Hilton manages the hotel on Margarita, but doesn't own
it.
-By Darcy Crowe, Dow Jones Newswires; (58) 414 249 6821; darcy.crowe@
dowjones.com
(END) Dow Jones Newswires
10-13-091654ET
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