- Nigerian lender Skye Bank took over debt-laden hotel last year
- Exit follows Etisalatâs withdrawal over loan repayment
InterContinental Hotels Group PlcÂ is withdrawing from Nigeria four years after it opened its first site in Africaâs most populous country following a disagreement with local partners over the terms of how to bring the property out of receivership.
The U.K. companyâs 358-room hotel in Lagos, Nigeriaâs commercial capital, will no longer operate as an InterContinental-branded property as of Jan. 18, Simon Stamper, IHGâs director of African operations, said in an emailed statement on Wednesday. The companyâs other hotels in sub-Saharan Africa are in South Africa, Mauritius, and Zambia.
âWe remain committed to Africa and continue operations in all our other properties across the continent as usual,â he said.
The exit from Nigeria of the worldâs third-biggest hotel chain follows that ofÂ Abu Dhabi-based telecommunications operator Etisalat, which gave up a 45 percent stake in its Lagos unit in June following the failure of talks about a loan repayment. Companies have recently struggled in Africaâs top crude producer, which came out of the worst recession in more than two decades last year and has faced dollar shortages.
A Nigerian court last MayÂ orderedÂ one of the lenders to the 30-billion-naira ($83 million) InterContinental hotel,Â Skye Bank Plc, to take over the property from its owner Milan Group over debts of $29.8 million and 3.8 billion naira, the Lagos-based ThisDay newspapersÂ reportedÂ at the time. IHG continued to manage the property, which then went into receivership.
Kunle Ogunba, the hotelâs receiver-manager, didnât return calls or respond to e-mails on Wednesday. Calls to the numbers on Milan Groupâs website did not connect.
IHG has 5,272 hotels worldwide with 785,544 rooms and owns brands including Holiday Inn and Crowne Plaza, according to its website.