HGL Real Estate Limited, an affiliate company of Flour Mills Of Nigeria’s (FMN) Honeywell Group, has completed a major move in Nigeria’s hospitality sector with the acquisition of a 14.12% equity stake in Ikeja Hotel Plc, the listed company behind Sheraton Lagos Hotel and other landmark hotel assets.
According to a notice issued by Ikeja Hotel Plc to the Nigerian Exchange Limited (NGX), the company received formal notification from HGL Real Estate Limited confirming the purchase of 305,323,525 units of Ikeja Hotel shares. The disclosure stated that this shareholding represents 14.12% of the company’s issued share capital, placing HGL Real Estate Limited as a sizeable minority shareholder in the hospitality and leisure group.
While Ikeja Hotel Plc did not disclose the exact transaction price, market reports indicate that, based on the company’s closing share price on the day the deal was struck, the stake is valued at around ₦13.2 billion. This valuation underscores the scale of the investment and signals strong confidence in Ikeja Hotel’s long-term prospects in Nigeria’s hospitality market.
The acquisition comes as Ikeja Hotel continues to strengthen its business following a period marked by boardroom disputes and regulatory scrutiny, including a forensic audit ordered by the Securities and Exchange Commission to address governance and asset-related concerns. Subsequent results have pointed to improved corporate governance and a more robust operating model, with revenue of about ₦12.8 billion reported for 2022 and continued growth in subsequent years. These developments have helped restore investor interest in the stock.
For Honeywell Group, the move extends the group’s reach into hospitality, adding to an already diversified portfolio spanning food, energy, real estate and financial services. Through HGL Real Estate Limited’s stake in Ikeja Hotel, the Honeywell ecosystem now has exposure to business travel, conferences and leisure spending at strategically located hotels in Lagos and Abuja.
Analysts note that the presence of a long-term institutional investor affiliated with Honeywell Group could support Ikeja Hotel’s ongoing recapitalisation and growth plans, including previously signalled efforts to raise new capital. Any future upgrades to facilities and services will depend on how the company and its shareholders execute these plans, but the new shareholding clearly places Ikeja Hotel more firmly on the radar of Nigeria’s capital market and hospitality watchers.
