Lagos, Nigeria, June 20, 2011—IFC,
a member of the World Bank Group, today announced the commitment of $14.9
million to Moorhouse Properties Limited and its subsidiary AM Hotels
Limited to develop four hotels in Nigeria. The investment will create
jobs and improve Nigeria’s business infrastructure by increasing the availability
of quality, affordable accommodation.
IFC is providing $7.4 million in equity to
MPL and a $7.5 million loan to AM Hotels Ltd. The investment will
enable MPL to build two Ibis hotels, introducing the internationally recognized
brand to Nigeria. The Ibis hotels will be managed by the French hotel
group, Accor, one of the world's leading hotel operators with about 4,000
properties under management in 90 countries.
MPL will also expand its network of locally
branded ‘Travel House’ hotels to add two properties. The new hotels
will help meet the increasing demand for mid-market and budget business
accommodation in Nigeria.
Mr. Koye Edu, Executive Director of MPL,
said, “Nigeria’s growing economy attracts many business travelers, but
construction of quality hotels has not met demand. Partnering with IFC
will help MPL offer, comfortable and moderately priced lodging to business
and leisure travelers through our budget hotels such as our Travel House,
while leveraging the international experience of Accor’s Ibis hotels.”
Solomon Adegbie-Quaynor, IFC Nigeria Country
Manager, said, “IFC is committed to creating opportunity in the private
sector in African economies and the hotel industry offers several development
benefits. Hotels create thousands of jobs and provide training for a variety
of posts – from low-level employment to higher level technical and management
positions. The foreign currency and tax revenue generated from hotels translates
into better infrastructure and services. Hotels can also help increase
revenues for local farmers and producers by linking them to the supply
The Nigerian government has targeted business
infrastructure as a foundation of its economic growth and development plan.
However, domestic and international lenders for business infrastructure
projects, such as hotels, do not have adequate access to affordable long-term
capital. The shortage of business infrastructure is an obstacle in Nigeria,
at a time of growing interest in business opportunities and investment
in the economy.
Tourism accounts for an estimated 9.1 percent
of global GDP and 8.8 percent of jobs, according to the World Travel and
Tourism Council. Despite its potential, Africa accounts for less
than five percent of global travel-related spending.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit