Sun International seeks to exit Nigeria through the sale of their holding in The Tourist Company of Nigeria Plc, which wholly owns Federal Palace Hotel. This comes as a result of the country’s weakening economy and persistent disputes with the group’s local partners. According to Bloomberg, occupancy rates at the property also fell to 42%.
In a statement released on the 22nd August, Sun International explained that:
“The Federal Palace in Nigeria continues to be affected by a Nigerian economy facing a number of crises including the low oil price, Boko Haram and a weakening Naira. Apart from this, issues specific to the local Nigerian partners in the Federal Palace have exacerbated the problem. The Board has decided to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value.”
Sun International Limited acquired 49% of The Tourist Company of Nigeria Plc from Ikeja Hotel Plc in 2009 and 2010.