Home » News: Owners of former Abuja Sheraton, Capital Hotels embarks on renovation of Abuja Continental Hotels

News: Owners of former Abuja Sheraton, Capital Hotels embarks on renovation of Abuja Continental Hotels

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Capital Hotels

One of Nigeria’s hospital firms, Capital Hotels Plc, has pledged that the company would continue to enhance its dominant position in the industry in the Abuja Market as carries out renovation of the hotel’s facilities.

According to tbiafrica.com, the Chairman Board of Directors, Capital Hotels Plc, Mr Ramesh Kansagra, made the pledge at the 42nd Annual General Meeting and the Annual Report and Financial statements for the year ended 31 December 2022 of the company in Abuja.

Kansagra who was represented by Non – Executive Director, Mr Paul said the hotel would continue its culture of excellent service delivery as the hallmark of “our brand, a tradition we proudly improve year on year-on-year”.

The chairman said the new rooms were under renovation and they would come into full operation in the year 2023.

According to him, this is in addition to the homely ambience of the Hotel as well as its unbeatable cuisines. This tradition is borne out of our long-term confidence in the hospitality sector of the Nigerian economy.

READ: Africa: Nigeria’s Hospitality firm, Transcorp Hotels to build $110 million 5-star hotel in Lagos

“The completion date of the first phase of the Hotel’s renovation involving about 97 rooms and the Club Lounge is now scheduled for the end of the first quarter of 2023.

“In addition to the said rooms a major facelift is being undertaken by the Hotel in line with the promise made by the new majority shareholder at the inaugural board meeting.

“The renovation objective is to enhance the outlook of the property and give a memorable experience to guests and other stakeholders for their loyalty.
Kansagra while highlighting the 2022 financial performance noted that Capital Hotels Plc posted an average top-line result.

According to him, the company turnover rose from N3.83 billion in 2021 to N5.33 billion in 2022 and the Cost of sales fueled by the cost of restructuring rose to N5.83 billion in 2022 from N3.27 billion in 2021, thereby posting a loss for the year.
He noted that the net assets of the company rose by 75.2 per cent to N24.99 billion in 2022, mainly due to the share premium that arose from the new shares allotted to the majority shareholder during the year.

The chairman noted that the year 2022 presented a very challenging macroeconomic environment due to the Russia – Ukraine war which puts a lot of pressure on the prices of foodstuff.

He added that the massive depreciation of the Naira against the US Dollar further fueled domestic inflation.

Kansagra said the impact of COVID-19 wanes in this part of the world, different strands of the virus had emerged in other parts of the world thus curtailing travel demands, adding that in the year 2022, the Nigerian economy was at the precipice of recession.

He said the main driver of the economic recession was the shortfall in crude oil production and exports.

The chairman noted that the statistics published by the National Bureau of Statistics (NBS) indicated that Nigeria’s Gross Domestic Product (GDP) grew by 2.9 per cent in real terms in Q3 2022.

He said: “The estimated annual growth of real GDP in 2023 is 3.75 per cent while her population growth rate is put at 2.41 per cent. For the Nigerian economy to be stable, her population growth rate should be reasonably lower than her GDP.

“Access to affordable funding by the real sector of the economy has continued to be a challenge.

“With the Monetary Policy Rate (MPR) standing at 17.5 per cent in January 2023, the cost of funds for the real sector is at best beyond the reach of the average business.”

Kansagra said the Monetary Policy Committee of the CBN used its tools to measure the MPR and Cash Reserve Requirement (CRR) as a reflector of interest rate in the economy.
The chairman said a significant source of concern in 2023 was the headline inflation targeted at 17.16 per cent because by December 2022, the inflation rate eased from 21.47 per cent to 21.34 per cent thereby achieving the target rate in 2023 would be a herculean task.

He said overall, the economic prospect of Nigeria as elucidated in the 2023 Budget is to promote fiscal sustainability, and macroeconomic stability and ensure a smooth transition to the incoming administration.

The chairman noted that the budget, according to the President Muhammadu Buhari was also designed to promote social inclusion and strengthen the resilience of the economy.

Kansagra, thereby thanked his colleagues on the board for continually spurring the management to deliver on set strategies and keep up with its value proposition to all stakeholders.

He said above all, they must thank God for His guidance and mercy and pray for His continuous direction of the Hotel.

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