Capital Hotels Plc has disclosed that the company has temporarily shutdown Sheraton Abuja Hotel, amid majority stake acquisition by 22 Hospitality Limited, and disagreement with its facility manager, Marriott International.
In a corporate document shared with shareholders and the investing public, on Thursday, and obtained by The Press Nigeria, Capital Hotels said some breaches had been discovered by Abuja Environmental Protection Board (AEPD) and the FCT Fire Services.
The discovery was made during inspection and reinspection of the Sheraton Abuja Hotel, resulting to the company taking the action to lockdown the luxury hotel.
This was done by the board of Capital Hotels to avoid forceful shutdown by the government agencies, as Sheraton Abuja Hotel had been served notification letters.
“Capital Hotels Plc (the Company) hereby informs its Shareholders and other Stakeholders that following the inspection and reinspection of the Sheraton Abuja Hotel (Hotel) by Abuja Environmental Protection Board (AEPD) and the FCT Fire Services during which several breaches were detected, the Board of the Company unanimously RESOLVED that in view of the letters served on the Hotel on the Sheraton Abuja Hotel (Hotel) by AEPD the Abuja Environmental Protection Board (AEPD) and the FCT Fire Services dated 21 September 2022 respectively, and in order to address the issues raised in the two letters by the agencies of government, (to avert the imminent scandal of a forceful closure of the Hotel with its attendant negative publicity), the Hotel has been shut down to remedy the breaches”, the document reads.
The closure of Sheraton Abuja Hotels followed protest from the managers of the hospitality business, Marriott International a week ago. The area vice president, Sub-Saharan Africa for Marriott, Richard Collins, had criticised a similar shutdown within a short time frame.
Collins had disagreed with the shutdown, stating that, “the decision taken by the owners of the Sheraton Abuja Hotel, to close the hotel within a short time frame, causing unnecessary distress to employees and significant disruption to guests, suppliers and other partners.
“We disagree with the manner in which the owners, Capital Hotels Plc, have hurried the decision to close the hotel, without making sufficient arrangements for the 291 hotel employees…” Collins had said.
Also, four weeks ago, Ripples Nigeria had reported that Capital Hotels now had a new majority investor, 22 Hospitality Limited, which acquired 66.13% equity stake, worth about an estimated N14 billion, from Hans Gremlin Nigeria Limited, Associated Ventures International Limited and in a private placement.
The acquisition of Capital Hotels gives 22 Hospitality Limited the controlling stake in Sheraton Abuja Hotel.