Capital Hotels plc, owner of Sheraton Hotel and Tower, Abuja, yesterday, declared a turnover of N4.55 billion for the year ending December 31, 2014, despite the drop in oil revenue that has affected all sectors of the nation’s economy.
The figure, which was declared at the 34th an- nual general meeting of the hotel in Abuja, marked a 2.3 percent decrease from the 2013 figure of N4.66 billion.
The gross profit, however, appreciated by 9.1 percent, bringing the figure to N1.32 billion as against N1.21 bil- lion declared in the year ending December 31, 2013.
Total net assets grew by 7.4 percent to the tune of N3.23 billion from N2.72 bil-
lion receded in the previous fiscal year.
In a financial statement read to the shareholders, Goodie Ibru, chairman, Cap- ital Hotels, also declared a profit after tax of N246.4 mil- lion, a 47.3 percent increase when compared with the 2013 figure of N167.3 million.
According to him, the operating environment of the year under review was very challenging, as purchasing power of customers, espe- cially government ministries, departments and agencies reduced drastically.
This, he said, is in ad- dition to renovation of the Abuja Hotel, which was billed to be completed in 18 months.
He said: “During the year 2014, the security status in the Northern part of the country was under close
watch, a situation that put the hospitality industry on edge.
The success of the government policy on ag- riculture puts the price of foodstuffs under check.
“International travel ar- rivals slowed down and many government func- tions were either cancelled or moved to areas perceived to be relatively more secure; expectedly, projected de- mand for accommodation, food and beverages was not achieved.
“The international mar- ket price of crude oil plum- meted during the third quarter of 2014. The price obtained for a barrel of crude oil was therefore soft on the benchmark price used for the 2014 Federal Govern- ment budget. As expected, there was less revenue for the three tiers of government.”
He said due to the reno- vation of the hotel financed from internally generated revenue of the hospitality outfit, the directors could not recommend payment of dividend.
In their separate submis- sions, stakeholders com- mended the effort of the Hotel at surviving the harsh economic situation in the country.
They however urged the management to work harder in the current fiscal year so as to make it up to the shareholders with respect to declaration of dividend in the coming year.
The forum attracted other members of the board of di- rectors, including Felix Ibru, Eddie Chukwura, Nicholas Dortie, Yakubu Akan
OWEDE AGBAJILEKE, Abuj
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