Abuja Sheraton Hotel changes name to Continental Hotel
Sheraton Hotels, Abuja, has changed its name to Continental Hotel, following its acquisition by 22 Hospitality Limited which earlier acquired Capital Hotels Plc.
The development marks the first corporate action by Capital Hotels since its acquisition by 22 Hospitality Limited in September, 2022.
Under the deal, 22 Hospitality Limited acquired 2.1 billion ordinary shares, which is a controlling stake of 66.1 per cent in Capital Hotels.
The name change, which is contained in a recent regulatory filing, discloses that the Hotel has also been reopened for operations.
It was gathered that Capital Hotels had not reported profit in the past three years and renovations were ongoing to bring the Hotel to the standard befitting its status as a Five Star Hotel.
Capital Hotels had set out early in 2022 to raise capital by way of rights issue to renovate the luxury hotel but the proposal was stalled by shareholders’ refusal to endorse the move on the grounds that the pricing of the rights issue would erode their rights.
Consequently, this forced the board to explore private placement, easing the path for 22 Hospitality to become the new owner.
The 1.6 billion shares allotted to 22 Hospitality following the transaction was valued at N11.3 billion and shares in Capital Hotels have been stuck at N2.76 per unit for the last eight weeks.
This was in addition to share purchases by the new owner from strategic shareholders like Hans Gremlin Nigeria Limited and Associated Ventures International Limited who parted with 456.6 million and 21.6 million shares, respectively.
According to the company’s audited 2021 financial statement, the Bank of Industry Limited, Ministry of Finance Incorporated, Nigeria Re-insurance Corporation and Continental Energy Resources Limited are among the substantial shareholders of Capital Hotels.