Re: Why renovation of Kwara Hotel is important

Dear Abdulrazaq Hamzat,

It’s quite pleasing to see that the proposed renovation of Kwara Hotels is generating healthy debates. This is a slight departure from the previous projects that were undertaken by the state government with little or no input from the public. When the government announced its decision to reposition Kwara Hotels to a world-class standard in 2020, the decision gained traction because of the strategic importance of the hospitality outfit to the socio-economic development of the state.

Kwara Hotels is the pride of Kwara and I am sure that well-meaning Kwarans want to see it thrive and regain its lost glory as the hospitality hub of North Central, Nigeria. However, in our bid to bring this desire to fruition, we must ensure that the project is done with a sense of responsibility and transparency.

Your assertion that the lack of a 5-star hotel in North Central Nigeria limits international business opportunities to Abuja and Southern Nigeria may not be entirely wrong. However, I would like to know what parameters you used in determining the rating of a hospitality business. Several hotels across the country play host to high-profile conferences, expatriates, and international government delegations, amongst others, without necessarily being rated 5-star.

With respect to Kwara Hotels, a facelift and improved service delivery are all that the hotel needs to regain its lost glory. If the real motive behind the remodelling of Kwara Hotels is to place it on par with top-rated hotels in the country, Craneburg Construction Company wouldn’t have been awarded the contract in the first place. Craneburg’s expertise centres around road, flyover and bridge construction. So, how can a company with little or no experience in hospitality deliver a hotel with a 5-star rating?

On the issue of budget, I reiterate that expending N17b on Kwara Hotels renovation is a total waste of taxpayer’s money. A Public-Private Partnership or a Joint-Venture arrangement would have been more appropriate. Kindly note that the Premier Hotel you used as a yardstick is not solely owned by the Oyo state government. Premier Hotel is owned by Western Hotels Limited, a subsidiary of Odu’a Investments Limited. The six states in South West Nigeria are shareholders in the company. Findings have shown that the renovation of the 87-room Premier Hotel will be handled by a competent International Hotel Development and Management Company based on a Joint Venture agreement. As regards the N20 billion you mentioned, I can’t confirm or dismiss the claim but one thing is certain; the project has the buy-in of shareholders and it won’t be singlehandedly funded by the Oyo state government.

In the case of Kwara, the renovation of Kwara Hotels will be solely funded by the Kwara State Government using taxpayer’s money. So, the government must apply caution in depleting our patrimony. If the government had stuck with its Concession arrangement with Crystal Group of Companies, it would have been more beneficial to the state. Not only will the company commit the sum of N3 billion to revamp the hotel but it would have also prioritised the local workforce. The government would have equally gotten its share of the revenue without breaking a sweat.

Concerning the ROI, we must not count our chickens before they hatch. Times have changed. During the peak era of Kwara Hotels, there were few hospitality outfits in the capital city of Ilorin. Now, the competition is high. Moreover, most lodgers would prefer serenity which the Ahmadu Bello Way Kwara Hotels may not be able to provide. Kwara state government cannot be right at all times. Since the proposed renovation of Kwara Hotels for N17 billion has attracted public condemnation, it’s not out of place for the government to go back to the drawing board and come up with a more sustainable arrangement.

At this point, I must correct the wrong assertion that Crystal Group of Companies bridged the terms of the agreement. That’s not true. Crystal Group of Companies did not commit any infraction. In fact, the company played by the book. Hence, the approval for the award of the Fix and Operate Concession to the company by the State Executive Council and the Kwara State House of Assembly.

For the record, neither the State government nor the Kwara State House of Assembly notified Crystal Group of Companies about the termination of the Concession approval. If the contract had been terminated legally, it wouldn’t have been a subject of litigation now.

We all want the AbdulRahman AbdulRazaq- led Kwara state government to succeed because the failure of the government will affect us all. That’s why we must speak up when the government is derailing.

Dr. Opeyemi.