Another South African company is parking out of Nigeria. Sun International Limited is jettisoning its 40% stake in Federal Palace Hotel after its operations became unsustainable.
The company also claimed the management of the hotel are embroiled in an irreconciliable disputes that has put its involvement in the business untenable.
According to Sun International, “The Federal Palace continues to operate in a difficult environment with the Nigerian economy facing a number of crises including the low oil price, The Islamist insurgency led by the Boko Haram group and a weakening naira also hurt trading”.
The situation was also complicated by an “ongoing shareholder dispute has frustrated all attempts to develop and improve the property”.
Sun has not given further details on what it plans to do with its stake in the hotel but the company will be looking at selling it for something worthwhile.
Sun International is owned by Sol Kerzner, the group operates adult gaming, casino, gambling and hospitality property across Africa.