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Tag: hospitality industry

  • COVID-19: Abuja Sheraton Loses N235m In 2020 Second Quarter

    COVID-19: Abuja Sheraton Loses N235m In 2020 Second Quarter

    Capital Hotels Plc, owners of Abuja Sheraton said its revenues fell by 88% in the second quarter of 2020 compared to the same period in 2019.

    In its 2nd quarter results released on Tuesday, the company reported a loss of N235 million in the quarter.

    In the second quarter, which covers the period of April to June 2020, the company reported a revenue of N142.3 million compared to N1.18 billion the same period in 2019. Business activities in the nation’s capital territory shut down in the month of April and May as the government imposed restriction of movement to combat the spread of coronavirus. Gradual easing commenced in June but economic activities in most sections of the economy remain subdued.

    Its latest results is one the worst quarters on record even as the first quarter of 2020 produced revenues of N993 million. Room revenues was only N64.3 million in the quarter ending June 2020 compared to 502.7 million in the quarter ending March 2020.

    READ ALSO: Radisson Blu Hotel To Debut In Abuja, Expands Chain In Africa

    Abuja Sheraton has been a shadow of itself for years seeing as its owners seek to recapitalize. However, the huge demand for hotel accommodation in the nation’s capital has helped the company deliver revenue growth. The company’s revenues have risen from N4.69 billion in 2015 to as high as N5.9 billion in 2018. Revenue fell to N5.1 billion in 2019.

    COVID-19: Abuja Sheraton Loses N235m In 2020 Second Quarter
    Room in the hotel

    Nigeria’s hospitality sector is one of the hardest hit in the economy as the economic lockdown took its toll on business travels to the capital territory. The lockdown also affected air travel as the nations airspace remained closed to commercial travel except for private jets and other essential services.

    Most 3-4 start hotels in Lagos remain either closed or operating minimally since large Nigerian hotels rely on business travel to boost hotel occupancy rates.

    The hotel industry faced a different challenge in the first three months of the year when the world stood in shock as the US bombed an Iranian General and oil prices began its steep fall. Coronavirus was still considered a strange Chinese virus.

    However, as economies across the world restricted travel in February, business travel in Nigeria was the first to suffer the consequences. Capital Hotel and Ikeja Hotels are the two major listed hospitality businesses on the Nigerian Stock Exchange.

    Source: Nairametrics

  • Radisson Blu Hotel To Debut In Abuja, Expands Chain In Africa

    Radisson Blu Hotel To Debut In Abuja, Expands Chain In Africa

    American international hotel chain, Radisson, has added Abuja, the Federal Capital Territory (FCT) as part of plans to expand its African portfolio.

    The company disclosed that it planned to open The Radisson Blu Hotel, Abuja City Centre, in 2024.

    It is the group’s first hotel in the city, complementing the existing nine in operation and under development in Nigeria.

    Located in the heart of the central business district of Nigeria’s Federal Capital, the 258-room hotel will boast five different food and beverage outlets from a specialty restaurant and all-day-dining restaurant to a lobby bar and café, a picturesque pool terrace and a premium business class lounge. The leisure facilities will include a 555sqm wellness spa, a gym and a swimming pool to maintain guest’s wellness.

    The expansion drive includes new properties in sub-Saharan Africa –Mali, Ghana, Ethiopia, and two in South Africa. Currently, Radisson manages about 100 hotels in 32 African markets.

    Elie Younes, Executive Vice President/Chief Development Officer, Radisson Hotel Group, said: “We believe in the vast potential of Africa.

    “The addition of the six hotels, following the announcement of Radisson Hotel Saint Denis earlier this year, places us firmly on track to reach over 150 hotels in operation and under development across the continent within the next five years.

    “The new hotel announcements include our debut in new markets, the introduction of additional brands and the strengthening of our presence in cities we’ve identified for scaled growth. We thank our hotel partners for their invaluable trust in Radisson Hotel Group and its people.”

    In his comment, Ramsay Rankoussi, Vice President, Development, Africa & Turkey, Radisson Hotel Group, stated, “Our growth has been well balanced between greenfield projects and strategic take-overs of existing hotels.

    “We aim to further accelerate our presence across the continent through conversions, especially as liquidity remains a critical challenge.

    “We have revisited our brand architecture to enable us to quickly integrate existing hotels to our network.

    “This strategy will be reinforced as our brands continue to demonstrate a better value proposition to our owners. Following our revised strategy, we believe we are now geared in providing solutions to the investment community for every type of asset, every segment and at every stage from funding, to construction and repositioning.”

    Aside from Nigeria, Radisson also plans to launch first a new hotel in Bamako, the capital and largest city in Mali, within the next six months.

    Others are the Radisson Hotel & Convention Centre Johannesburg, O.R. Tambo; Radisson Hotel Addis Ababa in Ethiopia scheduled to open in 2021; Radisson Hotel & Apartments Accra, Ghana; and Park Inn by Radisson, Durban Intl. Airport, Dube, South Africa.