Sun International Seeks to Exit Nigeria by Sale of Federal Palace Hotel – Real Estate Market Data and Research for Nigeria and other African Countries | estate intel

Sun International Seeks to Exit Nigeria by Sale of Federal Palace Hotel

Federal Palace, Victoria Island, Lagos. Image Source: Sun International

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.

  • This is not very good news…

    • Yeah its a shame. Adds to the growing list of companies/investors that have left the country for one reason or the other. Nigeria is a tough one to hack. Bad news for people who don’t succeed but for those who do, they break the bank!

      • The Old Mutual Investments announcement of a couple of weeks ago was a shining light. This one sounds more like a relationship problem rather than an economic fundamental issue…what do you think Dolapo?

        • Yeah so I heard. Apparently there have been long standing issues and they just got worse in recent times. If someone can come and iron out the issues, I think Federal Palace is a steal. Its one of my favourite hotels in the city.

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