Energy company subsidiary aims to restore Abuja hotel

by | 14 Oct 2022 | Hotel Projects, Projects, Refurbishments

Imagery courtesy of Marriott International.

22 Hospitality, a subsidiary of Nigerian energy firm, NIPCO, has taken a controlling stake in the company that owns Sheraton Abuja Hotel with a view to restoring the property to its former glory.

The business bought 66.13% of the equity in Capital Hotels, equating to more than 2 billion shares worth 50 Nigerian kobo each.

The transaction comprised a 51% stake (1.6 billion shares) directly from Capital, 457 million shares from former majority owner Hans Gremlin Nigeria Limited, representing 14.45% of the firm, and 0.68%/21 million shares from Associated Ventures International Limited.

Renovations required

In a statement, NIPCO’s assistant general manager, corporate affairs, Alhaji Lawal Taofeek, quoted group executive director, Alhaji Aminu Abdulkadir, as saying that this strategic drive is aimed at making the hotel carve a niche for itself by becoming a leading hospitality firm offering premium services to customers, in accordance with global standards.

The statement alleged: “The hotel is currently managed by Starwood/Marriott under various system licence agreements with Capital Hotels. In the past, Starwood had acknowledged in various reports that the hotel was in a very degraded state and will require hard renovations to make it brand compliant.

“However, despite the hotel’s poor condition and non-compliance with its brand standards, Marriott/Starwood has continued to manage the Sheraton Abuja Hotel, which is currently in a dilapidated and deplorable state.”

The statement added that the new investors are keen to turn around the fortunes of the hotel through the injection of substantial new capital under certain preconditions.

Personnel change

As a result of the takeover, Capital’s board, including chairman Chief Anthony Idigbe, have stepped down. Ramesh Kansagra was elected the new chairman, with his brother, Rishi Kansagra, becoming one of several new non-executive directors.

Idigbe congratulated 22 Hospitality on the successful conclusion of the transaction. He stated that his board had improved the corporate governance practice of the company and also completed the renovation of 97 rooms in the hotel and urged the new owner to sustain the tempo by renovating the remaining rooms.

The new chairman, Ramesh Kansagra, thanked the former board. He stated that the new board would reposition the hotel to its former glory and promised to turn around the finances of the hotel to become the number one in Abuja. He also stated that they had always paid dividends in all their companies and promised that Capital Hotels would not be an exception henceforth.

Good investor

Analysing the move, Trevor Ward, principal of Lagos-based consultancy firm W Hospitality, told Hotel News Now: “The Kansagra family has investments in many sectors, including energy, and is the owner of the 105-room One Aldwych Hotel on London’s Strand.”

Ward said the new owner will invest in the Sheraton Abuja Hotel, adding: “The hotel has 575 rooms, but it is operating with 420. It is in pretty poor condition, but [Kansagra] is a very good investor. The hotel is operated under a management agreement. I doubt that will last.”

Related Articles

Marriott inks deal to bring W hotel to Saudi

Marriott inks deal to bring W hotel to Saudi

Marriott International, Inc. and King Abdullah Financial District Development & Management Company (KAFD DMC) have announced the signing of an agreement. The agreement will see a new property from the Marriott brand W Hotels open within KAFD - a popular business...

IHG inks agreement with Kajima to open Karuizawa Holiday Inn

IHG inks agreement with Kajima to open Karuizawa Holiday Inn

The Karuizawa Holiday Inn will be the tenth hotel under the Holiday Inn brand family in Japan.  IHG and Kajima look to long-term future The project is IHG’s first agreement with Japanese real estate developer Kajima, and marks the first step in a broader...

Project of the Week: Park Hyatt London River Thames

Project of the Week: Park Hyatt London River Thames

An unusual destination for luxury living  London’s first Park Hyatt will be located at One Nine Elms, in the south-west of London. The building’s SW8 postcode isn’t one typically associated with luxury, however the 42-storey tower promises unparalleled views across...

SHA Wellness Clinic launches healthy living island in Middle East

SHA Wellness Clinic launches healthy living island in Middle East

SHA Emirates will be located in AlJurf, an enclave on the coastline approximately halfway between Abu Dhabi and Dubai. The next stage for a wellness leader The wellness island marks the next step in SHA Wellness Clinic’s global expansion plans, after fifteen years...

Nobu Hospitality reaches 40 hotel mark with Ho Chi Minh venture

Nobu Hospitality reaches 40 hotel mark with Ho Chi Minh venture

The project is Nobu Hospitality’s 40th hotel and will be its second opening in Vietnam, following the announcement of Nobu Hotel, Restaurant, and Residences Danang - the first Nobu residential project in Southeast Asia. A milestone achievement Nobu Hotel Ho Chi Minh...


Sheraton Hotels & Resorts, part of Marriott International, makes it easy for guests to explore, relax and enjoy the possibilities of travel at nearly 450 hotels in over 70 countries and territories around the world.

[showlayout id=510774]

[et_pb_blog_extras posts_number=”6″ include_post_tag=”74431″ blog_layout=”full_width” excerpt_length=”0″ show_more=”off” show_author=”off” show_date=”off” show_categories=”off” show_comments=”off” module_class=”blog-sidebar-list” _builder_version=”4.17.4″ _module_preset=”default” header_text_align=”left” header_text_color=”#58585A” header_font_size=”16px” meta_text_align=”left” background_color=”#ffffff” locked=”off” global_colors_info=”{}”][/et_pb_blog_extras]