Sheraton Abuja Hotel
The security challenges currently bedevilling Northern Nigeria is having adverse effect on tourism and the hospitality industry in the country as companies in the sector are recording declining profits.
For instance, a major player in the sector, Capital Hotels Plc, owners of Sheraton Abuja Hotel, witnessed a decline in its turnover, gross profit, and profit after tax for the year ended December 31, 2011.
Addressing shareholders at the company’s 31st Annual General Meeting (AGM) held in Abuja, Chairman of the company, Mr. Goodie Ibru, blamed the decline in profit and turnover on the securities challenges in the country, which he stressed is having negative effect on tourism and the hospitality industry.
“International travel arrivals have slowed and many government functions were cancelled or moved to areas perceived to be relatively more secure. Consequently, projected demand for accommodation, food and beverages could not be met. The company recorded a turnover of N4.90 billion as against N5.03 billion earned in 2010. Similarly, gross profit declined by 35.1 per cent to N1.2 billion in 2011 against N1.7 billion in 2010.
“The profit after tax dropped slightly by 2.99 per cent to N581.18 million compared to N598.59 million achieved in 2010,”he said.
However, despite the decline in profit the company recommended a dividend of seven kobo per share for the 2011 financial year. The seven kobo per share dividend was unanimously approved at the meeting with shareholders hailing the company for paying dividend despite the problems it faced during the year under review.
Ibru informed the gathering that Sheraton Hotel Abuja was currently undergoing renovation, which was designed to improve customer relations.
“Having designed, installed and approved the model (mock-up) room, the process of full roll-out of the renovation exercise has begun. The process of redesigning the public areas has also started. The renovation project is designed to improve the comfort of our guests and enhance brand loyalty to the hotel,” he said.