…. Raises doubt over dividend, as COVID-19 hits earnings with N1.4b loss in Q3
The owners of Ikeja Hotels PLC,has dragged the Lagos state government to court over the revocation of its N4.63billion Opebi George Land.
The company with direct or indirect ownership of Sheraton Lagos Hotel, Sheraton Abuja Hotel and Federal Palace Hotels & Casino has also expressed concerns that the continued effects of the COVID-19 pandemic on the hospitality sector will likely affect the declaration of dividend for the year ended December 31, 2020.
The statement to the shareholders on the unaudited group accounts for the third quarter ended September 30, 2020 had confirmed that the loss after tax of N1.4 billion recorded by the group was due to the continued effects of the COVID-19 pandemic on the hospitality sector.
Ikeja Hotel in a note filed at the Nigerian Stock Exchange said while responding to these challenges in order to return the business to profitability, it had received a letter dated October 15, 2020 from the Lagos State Government, purportedly revoking its right of occupancy on its land situated at Opebi Gorge, Ikeja, Lagos.
Though the company said it had taken legal action to contest the revocation, however it said, “it has the potential to impair the assets of the group to the tune of N4.63 billion if the government succeeds.”
