WorldStage Newsonline-- Transcorp Plc, owner of Transcorp Hilton Hotel Abuja, has expressed its commitment to actualizing the second phase of its post-acquisition plan as covenanted in the Share Purchase Agreement (SPA) with the Bureau of Public Enterprises (BPE.)
According to a statement, the second phase involves recapitalisation, service portfolio/facilities expansion, new business development, brand spread, market dominance, regional presence and global affiliations.
Receiving a team from the BPE team led by Rabiu Abubakar Abba, an Assistant Director, which was on post privatisation monitoring of the hotel on Wednesday, June 13, 2012, the Chief Executive Officer of Transcorp, Valentine Ozigbo said the action plan to actualize the covenant would be submitted to BPE within two weeks.
He attributed the delay in the expansion programme to the illegal encroachment on the hotel’s land and expressed delight that the issue had been resolved.
Ozigbo said the areas of focus during the exercise would among others, include, the construction of a shopping mall within the hotel grounds and construction of short/long stay service apartments on the available land within premises to cater for corporate clients.
On recapitalisation, the CEO said funding and development plan was in place, adding that “the plan is to leverage internal resources and debt funding for new business development and further refurbishments. After BPE succeeds with further sale of government’s interest, equity funding will be deployed to boost the capital base for further expansion”.
Ozigbo remarked that within the next five years, the hotel plans to establish its presence in Lagos, Ibadan, Port- Harcourt, Kano, Asaba and Calabar.
He added that the hotel has a total staff strength of 1,430 from the 957 it inherited in 2005 when the hotel was privatized.
Ozigbo decried the poor power supply in the country and the current security challenge, saying these were hampering the optimal performance of the hotel.
Leader of the BPE monitoring team, Rabiu Abubakar Abba, advised the core investor to at all times carry the Bureau along in its developmental plans and challenges.
