InterContinental Exits Nigeria Over Debt Concerns With Partners

18th January 2017- InterContinental Hotels Group (IHG) that owns a combined total of 5,272 hotels with 785,544 rooms with group ownership of Holiday Inn & Crown Plaza, is leaving Nigeria four years after it established the tallest hotel building at the heart of Victoria Island in Lagos (Africa’s most populous commercial centre), over disagreement with its partners on how to bring the property out of receivership.

Simon Stamper (IHG’s Chief of African Operations) in an emailed statement says from 18 January the 358 room hotel in Lagos will cease to bear the name Intercontinental Hotels. IHG leaves Nigeria to focus on its operations in Southern Africa with chains in Republic of South Africa, Mauritius & Zambia.

“We remain committed to Africa and continue operations in all our other properties across the continent as usual.”

With the confirmation of financial impropriety by the board of Skye Bank and transfer to administration by Asset Management Company of Nigeria, that saw the CBN mobilize the Government to step in and stabilize the lender for debts to the tune of 700bn naira, that threatens the stability of the Bank, its shareholders and customers, the Bank is clamping down on its debtors.

In 2017, A federal high court sitting in Lagos at the request of the Lender, Skye Bank, ordered Milan Group, the parent company of InterContinental Hotels in Lagos to take over the hotels over debt of $29.8m & 3.8bn naira over a total debt stock of 30bn naira ($83m) owed to the Lender, Skye Bank.

Remember that in 2014, the slide in the value of the naira, that saw so many dollar denominated debts fall into insolvency and raised the non-performing loan book of several lenders, including a consortium of Zenith, Guaranty Trust, Access Bank, Union, UBA Banks, that took over the fourth largest mobile telecom Networks Etisalat, owing north of 500bn naira to the above mentioned lenders. The crisis on crude oil revenues, exchange rate, increased inflation, employee turnover and closure of several service dependent businesses, caused a major hit to the contract agreements of corporate clients that had accounts with the hotel group and guaranteed them a minimum number of clients to keep them afloat and in good stead to service their loan book.

 

Mimi Mogeni

About Mimi Mogeni

My name is Emily Mogeni but I go with my nickname Mimi. I was born and raised in Nairobi Kenya but attended college in the United States. I have a Bachelor of Science in Computer Science from the State University of New York, Plattsburgh and a Master’s Degree in Information Systems Management. I currently reside in Minneapolis though I also work from our New York City office. I have a passion in technology and emerging world markets. I have had the opportunity to travel across the globe, meet, and experience diversity and different cultures. I consider myself a Jack-of-Trades. Everything interests me. From politics, financial affairs, social justice to technology. I am also intrigued by how we live, strive and how life changes us as human beings. I strive to learn to be a better person. As a true technology enthusiast, I see the impact IT makes as a whole in our daily lives, improving it each day globally. My professional goal is to network within productive environments that are able to cultivate and maximize interests. To build myself as indispensable asset through resilience, wisdom; and relentless conviction in asserting myself to. I am patient, and eager to be a resource to others. As an aspiring Entrepreneur, I plan to integrate all my knowledge and apply it to my personal business models and infrastructure. My company shall bridge the gap between information technology and a smarter economy.