Northern based New Nigerian Development Company Ltd (NNDC) has entered into an agreement with Castles HMG Africa pty Ltd to take over the operation and management of Arewa Hotels Development Ltd. (AHL).
The takeover is aimed at implementing the Strategic Management and Investment Agreement between New Nigeria Development Company Limited as Owners of Arewa Hotels (Dev.) Ltd and Castles HMG Africa (Pty) Limited a subsidiary of Africa Alliance Group (AAG).
The new operator is expected to create a transformation plan involving architecture, redesign, renovations, reconstructions, upgrade, revamping of its facilities and aggressive asset management of all assets under the ownership, management or control of Arewa Hotels Development Limited.
A joint press release on behalf of NNDC by Khalil A. Hamzat, Head Investment Supervision Directorate (ISD, NNDC) and on behalf of Castles HMG Africa Africa Limited by Oriana Galletti Director of Corporate Services and Wayne Gaddin Director of Business Development explained that “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, restructured or repositioned and where Castles HMG’s active operation/management strategy and expertise can be leveraged. 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.
“The Ag. Group Managing Director of NNDC, Mallam Shehu Mai-Bornu said, the signing ceremony is a culmination of over two years of discussions and that all the stakeholders have it as a duty to make the partnership work for the progress of all, assuring Castles HMG Africa that NNDC will be fully committed to the realization of the project.
“We are proud to continue consolidating and developing our collaboration with NNDC, our strong expansion partner. 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.”