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Capital Hotels declares N1.2b profit for 2016 fiscal year


Sheraton Abuja Hotel

Capital Hotels Plc, owners of Sheraton Hotels and Towers, Abuja, yesterday declared a profit after tax of N1,274.45 billion for the 2016 fiscal year. The figure represented a 158.9 percent increase against N492.26million recorded in the previous fiscal year. The profit rise was attributed to the net foreign exchange gain arising from the massive devaluation of the naira‎.

The company also announced a turnover of N5.37 billion at the 36th Annual General Meeting, held at the LadiKwali Hall of the Sheraton Hotels and Towers. However, it could not pay dividend to shareholders due to on-going renovation project involving about 112 rooms in the first tower of the hotel.

The new Chairman, Board of Directors, Victor Oyolu, who took over from the former chairman, Goodie M. Ibru, pleaded for patience among shareholders. According to him, work was on-going with a view to giving the hotel a new lease of life “and it is being financed from internally generated revenue.”

The company equally declared a N1.59 billion gross profit against N1.34billion recorded in 2015, representing 28.3 percent increase while total net assets grew by 32.13 percent to N5.24 billion from N3.97 billion in 2015.

The Chairman, while highlighting some of the challenges encountered in the previous year, noted that in spite of the hike in electricity tariff by The Nigerian Electricity Regulatory Commission (NERC)‎, electricity supply from the national grid has remained low during the year.

He added that the quantity of diesel used in powering generating plants grossly affected the cost of production in the year under review. The chairman expressed optimism that with the international market price of crude oil gradually looking up and with the recently launched Economic Recovery and Growth Plan (ERPG), the purchasing power of customers are likely to increase, thereby enhancing the revenue of the Hotel.

The company also used the occasion of the AGM to announce the incoming board members, including Toke Alex Ibru, and Dr. Alexander Thomopoulos.

In their reactions, shareholders commended the board for the ability to declare profit in spite of daunting economic challenge, which had resulted in the closure of many companies.

They however urged the company to ensure that dividends are declared in subsequent years.

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