Nigerian hotel ownership firm 22 Hospitality has bought 51% of Abuja-based Capital Hotels, which owns the 575-room Sheraton Abuja Hotel, for approximately 800 million Nigerian naira ($1.85 million).
In addition, 22 Hospitality bought approximately 478 million shares from Hans-Gremlin Nigeria — which at one time was the majority owner in the hotel — and Associated Ventures International. Those shares at the date of the latest transaction comprised 14.45% and 0.68% of Capital Hotels, respectively.
According to a release on the Nigerian Stock Exchange, which said all required regulatory approvals had been received, 22 Hospitality now controls more than 66% of Capital Hotels.
Following the transaction, Ramesh Kansagra was elected as the new chairman of Capital Hotels' board of directors, replacing Anthony Idigbe.
The Kansagra family has investments in many sectors, including energy, and is the owner of the 105-room One Aldwych Hotel on London’s Strand, said Trevor Ward, principal of Lagos-based consultancy firm W Hospitality.
Ward said the new owner will invest in the Sheraton Abuja Hotel.
“The hotel has 575 rooms, but it is operating with 420. It is in pretty poor condition, but [Kansagra] is a very good investor. The hotel is operated under a management agreement. I doubt that will last,” he said.
Another Nigerian-based Kansagra entity, 11 Hospitality, a subsidiary of 11 PLC, bought the 358-room Lagos Continental in 2019, which was formerly an IHG Hotels & Resorts-managed property.
“11 also is the owner of all the Mobil [gasoline] stations in Nigeria. It is awash in cash,” Ward said.
Ward added he will not be surprised if the hotel is taken off the Nigerian Stock Exchange.
Nigeria’s currency, the naira, is traded at 432.87 naira to the U.S. dollar — as of press time — but also at unofficial rate of approximately 720 naira to the dollar, Ward said.
The 22 Hospitality deal would have been conducted through the stock exchange.