WEMPCO explains sale of Oriental Hotel

Western Metal Products Company (WEMPCO) has said it put up Lagos Oriental Hotel for sale in order to focus on its core manufacturing mandate.

The company which stated this in a statement on Tuesday, said it has no plans of exiting Nigeria despite the challenging business environment.

It said WEMPCO Group of Companies was founded by businessman and entrepreneur, K.F. Tung, over 50 years ago. Tung died on March 27, 20l9, aged 97.

“While K.F.’s presence and guidance will be missed, both the Tung family and everyone at the WEMPCO Group of Companies remains fully committed to contributing to the ongoing growth and development of Nigeria,” it said.

“The Lagos Oriental Hotel is a flagship in the Nigerian hospitality business but is not a flagship of the WEMPCO Group. It is an investment made by the Group in 2008, but not part of our core manufacturing business.

“Although the recent spate of advertisement of the Hotel was not initiated or authorised by our Group, to divest in the asset would simply be a commercial decision based on the merits of a reasonable transaction.”

The hotel, which is located at 3, Lekki – Epe Expressway, Victoria Island, was listed for sale at N94 billion ($250 million)