The Abia State Government has revoked the Certificate of Occupancy and taken back Abia Hotels, Umuahia, from Investment Guarantee Limited, a private company that leased the property for 25 years.
The government said the action followed the company’s failure to meet the terms of the Development Lease Agreement signed in 2013.
The revocation was announced on Sunday in a statement issued by Ukoha Njoku Ukoha, Chief Press Secretary to Governor Alex Otti.
According to the statement, “In the development lease agreement, Investment Guarantee Limited committed to upgrade and redevelop the hotel to a 3-Star Protea-standard hotel and manage it for 25 years but failed to upgrade and redevelop the hotel to the agreed standards after 12 years.”
The government also said the company breached other parts of the agreement.
It added that compensation was paid to the firm to cover the costs it incurred in developing the hotel complex.
