InterContinental Exits Nigeria Over Debt Fallout With Partners

Must Read

Jumia is battling with $17 million fraud alongside several US lawsuit

Jumia has revealed some shocking revelations this week, Africa’s largest e-commerce operator has suspended some staff over an $18m...

How ₦50 Entry Strategy impacted Oride Bike Hailing Success in Ibadan

One would have thought that the introduction of ORide, a bike hailing system backed by its specialized application (Opay...

Africa’s fastest train line completely operational

Africa’s fastest train line is fully operational. Railway infrastructure constructor Colas Rail, who built the project announced the reports. Al Boraq...
- Advertisement -
  • Nigerian lender Skye Bank took over debt-laden hotel last year
  • Exit follows Etisalat’s withdrawal over loan repayment
- Advertisement -

InterContinental Hotels Group Plc is withdrawing from Nigeria four years after it opened its first site in Africa’s most populous country following a disagreement with local partners over the terms of how to bring the property out of receivership.

The U.K. company’s 358-room hotel in Lagos, Nigeria’s commercial capital, will no longer operate as an InterContinental-branded property as of Jan. 18, Simon Stamper, IHG’s director of African operations, said in an emailed statement on Wednesday. The company’s other hotels in sub-Saharan Africa are in South Africa, Mauritius, and Zambia.

Read:  Air Tanzania Receives First African Airbus A220 (Pictures)

“We remain committed to Africa and continue operations in all our other properties across the continent as usual,” he said.

The exit from Nigeria of the world’s third-biggest hotel chain follows that of 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 Africa’s 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 May ordered one of the lenders to the 30-billion-naira ($83 million) InterContinental hotel, 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 newspapers reported at the time. IHG continued to manage the property, which then went into receivership.

Read:  Renmoney CEO, Boshoro Resigns Appointment Under Scary Circumstance
Read:  Nigerian telecoms firms ‘relocating’ NOCs to India to seek economic relief

Kunle Ogunba, the hotel’s receiver-manager, didn’t return calls or respond to e-mails on Wednesday. Calls to the numbers on Milan Group’s 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.

 

Bloomberg

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Jumia is battling with $17 million fraud alongside several US lawsuit

Jumia has revealed some shocking revelations this week, Africa’s largest e-commerce operator has suspended some staff over an $18m...

Jumia reports Q2 2019 Results: Continued strong growth of top-line drivers and 94% increase in Gross profit

Jumia Technologies AG (NYSE: JMIA) ("Jumia" or the Company) announced today its financial results for the quarter ended June 30, 2019. "We continue to deliver...

Nimbus Media introduces new “in-house” digital screen technology

Nimbus Media, a frontline in-house advertising company has introduced a new look digital screen display technology saying that the new innovation is targeted at...

Kano, Zamfara and Cross River residents paid highest transport fares in July – NBS

Residents of Kano, Zamfara and Cross River paid the highest intra-city bus journey fares in Nigeria in July, the National Bureau of Statistics (NBS)...

More Articles Like This