Why renovation of Kwara Hotel is important
Let me put this inform of question and answer.
1-. Why is renovation of Kwara Hotel to 5 star important?
There’s no 5 star Hotel in North central and the northern Nigeria as a whole, except in Abuja and this limits international business opportunities to Abuja and the southern part of the country, something Kwara State wants position itself to change, through deliberate move.
Kwara’s massive ambition such as smart city, Kwara Hotel renovation and other major projects such as international conference center, virtual art centre, technology hub and even the garment factory are geared to leverage on each other for maximum effect. All these projects are not stand alone, they are interconnected as a futuristic plan.
2-. Is N17billion too much for the renovation of Kwara Hotel?
I am not sure.
Kwara Hotel has 172 rooms, but Ibadan Premiere Hotel currently under renovation in Oyo State has only 87 rooms.
The Oyo State government is renovating an 87 room hotel for over N20Billion and Kwara State government is renovating a 172 rooms hotel with N17billion.
Is that really much? I am not sure.
3. How much does Kwara Hotel generate?
When about 20% of Kwara Hotel is functional, it generates about N50 million per month. That’s N600million annually. If renovated and 100% functional, the annual revenue is projected at N3Billion.
4. How long will it take Kwara Hotel to generate N17billion?
At moderate operations, the hotel is projected to generate N3billion revenue annually. In worst case scenario, it will generate N2.5billion annually. In 7 years, the facility would have generated the cost of its renovation.
5. Why was the contract awarded to one company and given to another?
The first company bridged the terms of agreement and the award was revoked.
Also, the first company delibrately misled the government and when the truth was uncovered, the state had to do what it had to do.
6. Was the revocation communicated to the first company?
Yes. The state assembly passed another resolution to revoke the contract, before the state government cancelled it and it was properly communicated to the first company.
Abdulrazaq Hamzat
