Capital Hotels records N4.55b turnover for 2014 fiscal year

In spite of economic instability occasioned by insecurity and fall in crude oil price, which put Nigeria’s hospitality industry on edge, Capital Hotels Plc, owners of Sheraton Hotel and Tower, Abuja, has declared a turnover of N4.55 billion for the year ending December 31, 2014.
   
The figure, which was declared at the 34th yearly general meeting, however marked a 2.3 per cent decrease from the 2013 figure of NN4.66 billion.
 
The Gross Profit, however, appreciated by 9.1 per cent, bringing the figure to N1,32 billion as against N1.21 billion declared in the year ending December 31, 2013.

In a financial statement read to the shareholders, the Chairman, Capital Hotels Plc, Chief Goodie Ibru, also declared a Profit After Tax of N246.4 million, a 47.3 per cent increase when compared to the 2013 figure of N167.3 million. Total Net Assets equally grew by 7.4 per cent to the tune of N3.23 billion from the sum of N2.72 billion receded in the previous fiscal year.
 
The forum attracted other members of the board of directors including Olorogun (Senator) Felix O. Ibru, Eddie A. Chukwura, Nicholas E. Dortie and Yakubu Akanbi Disu.
 
The chairman further informed the gathering that the operating environment was very challenging in the fiscal year that has just ended. He listed the security status in the Northern Nigeria, reduction in international travel arrivals, as well as, the fall in international market price of crude oil as some of the factors that militated against the attainment of financial target for the year.

These factors, as well as renovation of the Abuja Hotel, which was billed to complete in 18 months’ time made it impossible for the Hotel to declare divided for the year ending December 31, 2014.

The chairman 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 agriculture put the price of foodstuffs under check.

“International travel arrivals slowed down and many government functions were either cancelled or moved to areas perceived to be relatively more secure expectedly, projected demand for accommodation, food and beverages was not achieved.
 
“The international market price of crude oil plummeted during the 3rd quarter of 2014. The price obtained for a barrel of crude oil was therefore soft on the benchmark price used for the 2014 Federal Government budget. Expectedly, there was less revenue for the three tiers of government. The purchasing power of customers, especially government Ministries, Departments and Agencies was thus curtailed and this impacted negatively on the revenue of the Hotel”.
 
Adding: “As pointed out above, renovation work has begun in the Hotel with a view to giving it a new lease of life and it is being mainly financed from internally generated revenue. Accordingly, the directors could not recommend payment of any dividend.”
 
Stakeholders, who took turn to respond to the presentation commended the effort of the Hotel at surviving the harsh economic situation the country has to contend with for some time now. They, however, urged the management to work harder in the current fiscal year so as to make it up for shareholders with respect to declaration of dividend in the coming year.