IBADAN: Real Reason Why Odu’a Investment Shut Down Lafia Hotels

THE Management of Odu’a Conglomerate Limited, has shut down, one of its three hospitality concerns called Lafia Hotel, located along Abeokuta road in Apata, Ibadan, Oyo State.

The company’s Head of Corporate Affairs, Mr Victor Ayetoro, who recently, through a statement hinted that the closure became imperative following the directive of the Odu’a Board/Shareholders to put a stop to the recurring losses being incurred by the hotels in the group over time to salvage the legacy of the heritage bequeathed by their forebears.

The hotels, as learnt have been struggling with inability to meet up with their financial obligations which include among others; backlog of workers’ salaries, huge debts to creditors, non-remittance of statutory commitments such as VAT, WHT utility bills amongst others.

Also, Mega Icon Magazine reliably gathered that Odu’a Investment Co. Ltd, the sole owner of the hotels had on many occasions came to the rescue of the hotels by releasing funds for renovation purposes and settling some of the outstanding hotel debts/statutory obligations which had been the experience in the past years without any significant improvement in the fortunes of the hotels.

Ayetoro informed that the move kickstarts a new strategy to reposition the hotels in the conglomerate’s chain.

The statement reads: “Odu’a Investment Co. Ltd, which is the sole owner of the hotels, had on many occasions rescued the hotels by releasing funds for renovation purposes and settling some of the outstanding hotel debts in past years.

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“The interventions did not yield fruits in the case of Lafia,

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The company further assured the public that third party claims would be reviewed and sorted out while the staff would receive their entitlements as may be agreed after ongoing discussions.

Lafia hotel is one of the hotels inaugurated by Chief Obafemi Awolowo’s government as a step to tap in the tourism economy together with the Premier Hotel and Lagos Airport Hotel . All the three are under the auspices of Odu’a Conglomerate and they all maintained the sanity of a prosperous hospitality concern.

Lafia Hotel was one of the best hotels in Nigeria in the 70s which was the only one fit enough to accommodate the then Head–of–State, General Yakubu Gowon who paid a visit to the Western State then .

The Hotel has like other hospitality outfits been operating within the economic dictate and contemporary business climate overing in Nigeria. That is going from fair to good and for the better.

However, in the past four years, the hotel’s fortune has consistently slid from the good, to the fair and to the bad.

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