Ikeja Hotel Laments N4.3bn Potential Impairment As LASG Revokes Land

The board of Ikeja Hotels Plc, owners of the Sheraton Lagos Hotel says it has dragged the state government to court over the purported revocation of its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos.

In a statement to shareholders through the Nigerian Stock Exchange (NSE), the company, through its company secretary Punuka Nominees Limited, said “the revocation has the potential to impair the assets of the Group to the tune of N4.63bn if the government succeeds” in its revocation move.

The government’s directive was communicated through a letter dated October 15, 2020, it explained.

The statement put the group’s Loss After Tax for the third quarter at N1.4bn, which it blamed on “the continued effects of the COVID-19 pandemic on the hospitality sector, and is likely to affect declaration of dividend for the year ended December 31, 2020.”

It assured its response to these challenges in order to return the business to profitability.