IFC Invests N22bn in Moorhouse Properties
- By Simeon Ogoegbulem
- Published June 20th, 2011
- News
- Unrated
The International Finance Corporation (IFC) has announced the commitment of million N22.35 billion ($14.9) to Moorhouse Properties Limited and its subsidiary, AM Hotels Limited. IFC said the investment is to enable the property company to develop four hotels in Nigeria.
According to IFC, a member of the World Bank Group, the investment would create jobs and improve Nigeria’s business infrastructure by increasing the availability of quality and affordable accommodation.
The Nigerian government has targeted the business infrastructure as one of the bedrock of its economic growth and development plan. However, domestic and international lenders for business infrastructure projects, such as hotels, do not have adequate access to affordable long-term capital. The shortage of business infrastructure is an obstacle in Nigeria at a time of growing interest in business opportunities and investment in the economy.
IFC is providing $7.4 million in equity to MPL and a $7.5 million loan to AM Hotels. The investment will enable MPL to build two Ibis hotels, introducing the internationally recognized brand to Nigeria. The Ibis hotels will be managed by the French hotel group, Accor, one of the world’s leading hotel operators with about 4,000 properties under management in 90 countries. MPL will also expand its network of locally branded ‘Travel House’ hotels to add two properties. The new hotels respond to an increasing demand for mid-market and budget business accommodation in Nigeria.
Mr. Koye Edu, executive director of MPL, said “Nigeria’s growing economy attracts many business travellers, but construction of quality hotels has not met demand. Edu added that partnering with IFC will help MPL offer comfortable and moderately priced lodging to business and leisure travellers.”
Solomon Adegbie-Quaynor, IFC Nigeria’s country manager, said “IFC is committed to creating opportunity in the private sector in African economies and the hotel industry offers several development benefits.”
Adegbie-Quaynor said hotels create thousands of jobs from low-level employment to higher level technical and management positions adding that the foreign currency and tax revenue generated from hotels translate into better infrastructure and services.
He noted that hotels can also help increase revenues for local farmers and producers by linking them to the supply chain.
According to IFC, a member of the World Bank Group, the investment would create jobs and improve Nigeria’s business infrastructure by increasing the availability of quality and affordable accommodation.
The Nigerian government has targeted the business infrastructure as one of the bedrock of its economic growth and development plan. However, domestic and international lenders for business infrastructure projects, such as hotels, do not have adequate access to affordable long-term capital. The shortage of business infrastructure is an obstacle in Nigeria at a time of growing interest in business opportunities and investment in the economy.
IFC is providing $7.4 million in equity to MPL and a $7.5 million loan to AM Hotels. The investment will enable MPL to build two Ibis hotels, introducing the internationally recognized brand to Nigeria. The Ibis hotels will be managed by the French hotel group, Accor, one of the world’s leading hotel operators with about 4,000 properties under management in 90 countries. MPL will also expand its network of locally branded ‘Travel House’ hotels to add two properties. The new hotels respond to an increasing demand for mid-market and budget business accommodation in Nigeria.
Mr. Koye Edu, executive director of MPL, said “Nigeria’s growing economy attracts many business travellers, but construction of quality hotels has not met demand. Edu added that partnering with IFC will help MPL offer comfortable and moderately priced lodging to business and leisure travellers.”
Solomon Adegbie-Quaynor, IFC Nigeria’s country manager, said “IFC is committed to creating opportunity in the private sector in African economies and the hotel industry offers several development benefits.”
Adegbie-Quaynor said hotels create thousands of jobs from low-level employment to higher level technical and management positions adding that the foreign currency and tax revenue generated from hotels translate into better infrastructure and services.
He noted that hotels can also help increase revenues for local farmers and producers by linking them to the supply chain.
