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AMCON: Costliest hotel in Lagos, Intercontinental now property of 11 Plc
Following completion of payment and official documentation, 11 Plc, formerly known as Mobil Oil Nigeria Plc, has finalised discussions with the Asset Management Company of Nigeria (AMCON) to acquire the Lagos Continental Hotel.
A statement filed at the Nigerian Stock Exchange (NSE) by 11 Plc, made it clear that the multibillion hospitality complex is now under its management subject to terms and conditions between both parties.
Business Hilights recalls that 11 Plc, which currently owns several prime properties in its real estate portfolio rented to blue-chip tenants, said it aimed to diversify its interests, given a challenging environment in the downstream sector of the petroleum industry.
The conglomerate averred that the new asset will require significant investment to raise standard from the current state to the level consistent with similar facilities in major cities around the world.
It said, “Fuel margins in the industry have remained stagnant for several years in the highly competitive and regulated industry. We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholders in the future of the Nigerian economy.
“We assure our numerous stakeholders that we remain committed to delivering outstanding value and robust returns in the years ahead. However, in the short term, cashflow and earnings before interest, tax, depreciation and amortisation could be under strain as a result of funds needed to renovate and upgrade the hotel to attract a 5-star branding.”
The company also assured the employees of the hotel that they would be treated with the utmost dignity and respect during the transition and sought their cooperation to make the takeover a smooth one.