Shareholders of Capital Hotels Plc have commended the positive performance of the new management and transformation of the Abuja Continental Hotels since taking over last year.
The shareholders, who spoke at the 42nd Annual General Meeting in Abuja, were quoted as saying that the acquisition of a majority stake in Capital Hotels by 22 Hospitality Limited, which led to the emergence of a new management of the former Sheraton Hotels in September, has rejuvenated the hospitality business.
Hitherto, Sheraton Hotels was managed and operated by Marriott International (owners of Starwood Hotels & Resorts Inc) under an operating Services, System and Centralised Services Agreements.
The agreements, which subsumed the previous agreements between Capital Hotels and Sheraton Overseas Management Corporation, did not impact significantly on the fortunes of the hotel.
A statement from the hotel said shareholders who spoke described the arrival of the new management as a dream come true, as the hotel has witnessed significant turnaround in most aspects of its operations in the last one year.
The Chairman of Noble Shareholders Association of Nigeria, Innocent Nwokocha Peters, said the new management has given shareholders enough reason to hope for better days ahead.
“The massive rehabilitation of the Abuja Continental Hotel is gradually bringing more life to the hospitality firm, even as the popular events centre in the iconic hotel is coming alive again,” Peters said.
“The difficult experience during the takeover of the company by the new owners was clearly understandable, in view of the deplorable state of the hotel and the huge resources spent on the rehabilitation of the hotel to bring it back to standard can only be described as commendable,” he added.
For the President, Capital Shareholders Association, Augustine Ezechukwu, the new management deserves commendation for the recent improvement in services being rendered by the hotel in recent times.
Noting that the turnaround in the Abuja Continental Hotel was yet to be completed, Ezechukwu pleaded with shareholders and other investors, particularly the minority shareholders to exercise patience, as more improvements in the hotel would soon translate into more clients and subsequently more revenues for investors.
A lot of resources are being deployed to revitalise the company and set it on the path of sustainable growth.
Reviving the Hotel
Responding, the meeting Chairman, Paul Obi, also a lawyer and Non-Executive Director, who stood in for the Capital Hotel’s Chairman, Ramesh Kansagra, assured shareholders that the noticeable improvements in the hotel are an indication that the new owners are determined to revive the hotel.
“The dream of having the company begin to pay dividends to investors will soon happen. The management is focussed and committed to continued acquisition of assets to consolidate and expand our portfolio from oil and gas to the hospitality and estate businesses. A lot of resources are being deployed to revitalise the company and set it on the path of sustainable growth,” he said.
Obi assured shareholders that they would not regret the decision by 22 Hospitality Limited to acquire a majority stake in the company and the subsequent change in top management.
“We did the same with our acquisition of a 60% equity of ExxonMobil in Mobil Oil Nigeria Plc, and today the company and its esteemed shareholders are the better for it.
“The share price in the stock market has not only gone up, the infrastructure upgrade in the hotel has created new business opportunities for investments, such as the establishment of an LPG plant, re-entry into the Aviation fuel business, etc.” he said.
The Chairman allayed fears by some minority shareholders regarding significant return on their investments, and assured them of prospects for easy exit if they decide to divest their interests.
