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Odu’a shuts Lafia Hotel over debts

The management of Odu’a Investment Company Limited on Friday closed one of its hotels, Lafia Hotel, in Apata area of Ibadan over what it described as growing debts and losses.

The Head, Corporate Affairs, Odu’a Investment Company, Victor Ayetoro, said in a statement that the group took the step in order to reposition the hotels in its chain.

The closure may be an indication that other hotels belonging to the group may be shut. Odu’a is the owner of Premier Hotel, Ibadan and Airport Hotel, Ikeja, Lagos.

Ayetoro said, “The action taken on Friday, June 29, 2018 became imperative following the directive of the Odu’a Board and shareholders to put a stop to the recurring losses being incurred by the hotels in the group over time and to salvage the legacy of the heritage bequeathed by our forebears.

“The hotels 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 (Value Added Tax) and WHT (Withholding Tax) and utility bills.

“Odu’a Investment, 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 and statutory obligations, which had been the experience in the past without any significant improvements in the fortunes of the hotels.”

The statement added that all third-party claims would be sorted out within a short time.