The management of Odu’a Investment Company Limited Friday shut down the operations of Lafia Hotels, Ibadan, one of its subsidiaries, over financial loses.
The action, the company said, followed the directive of the group’s Board/Shareholders to put a stop to the recurring losses being incurred by the hotels in the conglomerate over time.
A statement by the conglomerate’s Head of Corporate Affairs, Mr. Victor Ayetoro, described the development as a starting point in the group’s new strategy to reposition the hotels in its chain. It said the company was determined to salvage the heritage bequeathed by the founding forebears.
According to the statement, the hotel subsidiaries have been struggling with their financial obligations which include backlog of workers’ salaries, huge debts, and non-remittance of statutory commitments such as VAT and WHT utility bills.
“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,” the statement said.
It pointed out that the interventions have not, however, yielded fruits in the case of Lafia.
The company assured the public that third party claims would be reviewed and sorted out.
The staff, it was learnt, would receive their entitlements as may be agreed after ongoing discussions.
Lafia Hotel is located along Abeokuta Road, Apata in Ibadan, the Oyo State capital.
Other hotel subsidiaries are Premier Hotel, Ibadan and Airport Hotel, Ikeja, Lagos.