Hotel investor seeks better financing for construction projects

Olufemi Okenla, Chairman and CEO of HDV Nigeria Limited, has called for improved financing for businesses, especially in construction and hospitality sectors. He urged the government and banking sector to create a project financing model that supports long-term investments. The current financing structure places an excessive burden on private investors as banks often require them to start repaying loans before projects generate revenue.

Okenla stated that the current model is ineffective and resembles a "winner takes it all" approach. He argued that the financing system must reflect the country's developmental objectives, noting that development banks in other economies offer discounted funding and repayment periods linked to project cash flow. The moratorium period should not start until the project reaches cash flow, but that is not the case in Nigeria.

Okenla revealed that HDV Nigeria Limited initially planned to establish 10 mid-scale hotels within 15 years but has only managed to open two in 13 years due to funding and other challenges. The company aims to expand its hotel portfolio despite the setbacks. The new Ibis Lagos Lekki, a 120-room hotel, features soundproof rooms, meeting, conference, and exhibition halls, a gym, and an open terrace swimming pool.

It also has a multi-storey car park and a sustainable hotel development with internationally certified fire safety and acoustic insulation standards. The hotel's General Manager, Stefano Ciocca, emphasized that opening a hotel is about opening a door to new experiences, relationships, and opportunities. The Lagos State Governor, Babajide Sanwo-Olu, hailed the investment as a vote of confidence in the state's economic prospects, highlighting the role of hospitality in driving investment, employment, tourism, and overall growth.