Sheraton Lagos Hotel Not in Land Dispute With Lagos Govt.—Ikeja Hotel

Sheraton Lagos Hotel Land

By Dipo Olowookere

The management of Ikeja Hotel Plc, operators of the prestigious Sheraton Lagos Hotel in Ikeja, has reacted to reports in some sections of the media (Business Post not included) claiming that the Lagos State government has revoked its occupancy.

On Tuesday, Ikeja Hotel had informed the investing public that the state government withdrew the right of occupancy (R of O) it earlier issued to one of its subsidiaries, Charles Hampton Limited.

The firm said it was informed of this development in a letter from the state government dated Thursday, October 15, 2020, for the land situated at Opebi Gorge, Ikeja.

In the notice filed to the Nigerian Stock Exchange (NSE), Ikeja Hotel had disclosed that the revocation could result to a loss of about N4.63 billion, but emphasised that a legal action has already been taken against the Lagos State government on the matter.

“The company received a letter dated October 15, 2020, from the Lagos State Government, purportedly revoking its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos.

“The company has taken legal action to contest this revocation.

“However, the revocation has the potential to impair the assets of the group to the tune of N4.63 billion if the government succeeds,” the disclosure had noted.

But this notice from Ikeja Hotel was, according to the firm, misconstrued by the media to mean that Sheraton Lagos Hotel was in trouble because the Lagos State government has revoked its land.

Reacting to this, Ikeja Hotel stressed that the land Sheraton Lagos Hotel sits on remains intact as the “notice of revocation from the Lagos State Government on the said land in Opebi Gorge has nothing to do with Sheraton Lagos Hotel or  the  land on which the hotel is situated.”

Meanwhile, Ikeja Hotel has said the loss after tax of N1.4 billion it recorded in the third quarter of 2020 was due to the continued effects of the COVID-19 pandemic on the hospitality sector.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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