The Akwa Ibom State Governor, Udom Emmanuel, has rejected Starwood Hotels & Resorts’ termination of its contract with the state government.

Starwood, which is the operator of the state-owned Le Meridien Ibom Hotel & Golf Resort in Akwa Ibom, had notified the governor that it would cease to manage the five-star hotel fromSeptember 14.

Starwood, as exclusively reported by PREMIUM TIMES, accused the state government of failing to pay its debt to the hotel as when due, in addition to “failing to deposit in the Operating Account the amount of funds requested by Operator within fifteen (15) days after delivery of Operator’s Fund Request” as spelt out in their agreement.

The company said that the government as at March was in default of N394 million.

Starwood, a worldwide hospitality organisation, manages Le Meridien, Sheraton and other famous brands around the world.

The company is now a subsidiary of Marriott International Inc after a $13 billion acquisition by the American hospitality company in September last year.

Governor Emmanuel, over the weekend, tactfully accused the operator of wanting to withdraw from the contract because the state government contracted Price WaterHouse Coopers to audit the accounts of the hotel.

The governor said during a monthly prayer meeting at Government House, Uyo, that the state wasn’t getting the expected gains from the hotel, despite several years of investments in it.
He said that Marriott’s attempt to abandon the resort at this point was unacceptable to the state government.

“I had a meeting with them yesterday (Friday), and I told them you are not going,” the governor was quoted by his spokesperson Essien Ndueso to have said during the prayer meeting.

“I am going to take a trip to their regional office in Dubai and tell them that this marriage cannot be separated now.”

The governor said that the hotel management complained that they have been running the resort at a loss, but that he told them to be patient and allow the audit firm to conclude the exercise.

The governor said he was ready to protect the wealth of the people, without compromising his integrity.

“When they say that the government is not giving money (to the hotel), I ask them, how can you keep giving money like that for several years, without any dividend?” he said.

Mr. Emmanuel recounted the state government’s recent contributions to the hotel maintenance to include the provision of a 1500KVA generating system and the refurbishing of the entire lighting system, the toilets, and the cooling system.

He said he has had a fruitful meeting with the management of the hotel and that the issues could be resolved.

Source: http://www.premiumtimesng.com/regional/south-south-regional/241096-%e2%80%8eakwa-ibom-governor-rejects-operators-termination-le-meridien-ibom-hotel-contract.html

Front Page: Lalasticlala

Na by force

Good, they can go after audits, no more wastages, ourMumuDonDo

By the time the governor stays 8yrs, everything in the state would have crumbled...

Apabio's shoes is too big...can't fit the dullard with unpopular policies...

I don't get the governor's angle on this. It's in his right to audit but does this counter the fact they owe so much money to the company? I guess he's checking if they are cooking books to deny their profits. Now he has to run to dubai to settle the matter either way.

I'm interesting both state and Starwood saying they aren't making money off this hotel. It's bring to question how popular is it really. I know few people that frequently stay at hotel and hangout.

I went to restaurant aswell as upstairs club area and seen they weren't busy, if compared to hotel club area in place like port Harcourt where it's always jumping. Next anytime I was there I never seen anyone playing a round of golf.

Update to the story Udom failed to make a deal witg Sherwood to manage Le Meridien. Now the state government will take over. I'm speculating they will try an find new partners.

They are now telling us they haven't recived a dime from the hotel for decade. It's insane how we elected idiots to state house of assembly. How do you have asset bleeding resources for decade and you don't ask questions.

The state Commissioner for Culture and Tourism, Victor Antai, told the House Committee on Monday that the state government has taken over the running of the Le Meridien Ibom Hotels and Golf Resort from Starwood Ltd because, according to him, the former managers of the hotel did not remit any money to the government for the past 10 years.

Source: https://www.premiumtimesng.com/regional/south-south-regional/255083-lawmakers-ask-governor-produce-details-akwa-ibom-debt-profile.html