The popular Lagos Continental Hotel has been acquired by an oil company, 11 Plc, formerly known as Mobil Oil Nigeria Plc, the energy firm has confirmed.
The hospitality company was acquired from the Asset Management Company of Nigeria (AMCON) after top executives of the two organisations held several intense talks.
Mobil, in a notice to the Nigerian Stock Exchange (NSE), said it plans to partner with a major international brand to provide world class service synonymous with all its operations.
According to the disclosure, the new asset will require significant investment to raise standard from the current state to the levels consistent with similar facilities in major cities around the world.
Mobil said it currently owns several prime properties in its real estate portfolio fully rented to blue chip tenants, saying the acquisition of Lagos Continental Hotel was consistent with its desire to delivery “our interests given the current challenging environment in the downstream sector of the petroleum industry.”
It stated that, “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.”
Concluding, the energy company assured its “numerous stakeholders that we remain committed to delivering outstanding value and robust returns in the years ahead.
“However, in the short term, cashflow and EBITDA could be under strain as a result of funds needs to renovate and upgrade the hotel to attract a 5-star branding. We also like to assure the employees of the hotel that they will be treated with the utmost dignity and respect during the transition and seek their cooperation to make the take over a smooth one.”
Business Post reports that shares of Mobil closed flat today at the exchange at N147.90 per unit.