By Shuaib Sadiq
The New Nigeria Development Company (NNDC) has engaged Castles HMG Africa limited of South Africa to take over operations and management of Arewa Hotels.
The NNDC disclosed in a joint press release signed by Malam Khalil Hamzat, Head Investment Supervision Directorate and Oriena Galletti, Director, Corporate Services for Castles HMG Africa Limited.
The statement said: “the NNDC signed Strategic Management & Investment Agreement between New Nigeria Development Company Limited as Owners of Arewa Hotels (Dev.) Ltd & Castles HMG Africa (Pty) Limited a subsidiary of Africa Alliance Group (AAG).”
The statement said that Castles HMG Africa (Pty) Ltd would take over the operation and management of Arewa Hotels Development Ltd.
” They are taking over for the purpose of redeveloping and implementing a capital investment and transformation plan.
“The transformation plan involves architecture, redesign, renovations, reconstructions, upgrade and revamping of its facilities.
“The Plan also include aggressive management of all assets under the ownership, management and control of Arewa Hotels Development Limited,” it said.
According to the statement, the agreement fulfils NNDCs vision for a stronger brand equity, a veritable platform for diverse revenue base through significant investments in infrastructure, assets and technology.
“Both NNDC and AHL currently own or operate five (5) hotels in Nigeria including the iconic Hamdala Hotel, Kaduna with plans to expand its operations over the next few years, a feat that it has achieved in the past across the 19 Northern States of Nigeria.
“Castles HMG Africa Pty Limited targets investments in sizeable underperforming/dilapidated hotel properties in strategic locations, that can be refurbished.”
The NNDC, the statement further said, the agreement would enable the structuring and repositioning of the hotels to attract massive investments.
“This creates the conditions for attractive financial performance and long-term value creation.
“The partnership agreement aims to bridge the huge gap in the lack of branded Hotels in the North as compared to the Southern parts of Nigeria,” it said.
According to the joint statement, the Ag. Group Managing Director of NNDC, Mallam Shehu Mai-Bornu said, the signing ceremony was a culmination of over two years of discussions.
“The stakeholders have it as a duty to make the partnership work for the progress of all.
“Mai-Borno assured Castles HMG Africa that NNDC will be fully committed to the realization of the project.”
Also, Mr Gregory Ozegbe, Chairman/CEO of Castles HMG Africa Pty Limited of South Africa a subsidiary of Africa Alliance Group, said the agreement would further consolidate collaboration with NNDC for strong expansion of partnership.
“The mutual trust we have built up over the last two years forms the basis for the successful execution of the agreement.
“For us, the relationship represents a huge step forward in our growth.
“With this, we have the opportunity to further expand and strengthen our expertise and international hotel brand awareness in the Northern part of Nigeria,” Ozegbe said.