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Venezuela seizes second hotel property

A portrait of the president greets you at reception, the managers espouse socialism, the guests wear red T-shirts and the decor promotes Latin American solidarity: Welcome to Hotel Chavez.

What used to be the Caracas Hilton today soars over Venezuela’s capital as a bold symbol of Venezuelan President Hugo Chavez’s leftist revolution, a 36-story, state-run declaration of intent.

The government took over from the US hotel chain two years ago as part of a sweep toward greater state economic control. Renamed Alba — “dawn” in Spanish and also the acronym of Chavez’s regional alliance, the Bolivarian Alternative for the Americas — the hotel hosts summits that condemn US imperialism and chart a brighter, leftist future.

“We are the first socialist hotel but hopefully not the last,” said Katiuska Camaripano, its general manager.

Last week it acquired a sister: The government seized the Hilton on Margarita island, Venezuela’s tourist playground. It had angered Chavez during a meeting of African leaders he hosted at the hotel.

“The owners tried to impose conditions on the revolutionary government. No way. So I said: ‘Let’s expropriate it.’ And now it’s been expropriated,” Chavez said.

A presidential decree transferred its assets, including 280 rooms, 210 suites, shops, restaurants and a casino to the tourism ministry. A Hilton spokeswoman said the chain was “evaluating” the government’s action.

The state’s Margarita acquisition may also be renamed Alba, consolidating the brand name. Venezuela has also partly funded a small Alba hotel in Managua, capital of its leftist ally Nicaragua, Camaripano said.

“It would be wonderful if we became part of a socialist chain,” Camaripano said.

Two years after it became a political as well as geographic landmark, the Caracas Alba draws mixed reviews. Managers say it blends socialist values with business savvy and top-notch service. Critics say it is a dump in which nothing works.

There are some striking changes. Gone are the American and European managers and well-heeled foreign guests who used to snap up jewelry and cosmetics in the shops. Red-clad government officials and Cuban delegations have largely taken their place.

“Business is dead. All we’ll sell is chewing gum and antibiotics,” one store owner lamented.

The Italian restaurant now serves more Caribbean fare such as chicken in coconut sauce and cachapa, a corn-based pancake. The gift shop offers a range of ceramic Chavez mugs and sculptures ranging from US$20 to US$240.

The hotel has 900 rooms, but under Hilton management only 545 were in service, a number the Alba has increased to 782. Last year’s 90 percent occupancy rate owed much to government delegations, Camaripano said.

Occupancy this year has fallen to 65 percent, but the hotel still makes a profit.

“We are getting a lot of ordinary tourists as well as official delegations,” Camaripano said.

Travel agents dispute that. Venezuela’s capital has a shortage of hotel rooms, but foreign tourists often refuse to stay in the Alba, citing bad service, credit card rip-offs, musty smells, tatty furniture and overpriced food.
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