IKEJAHOTEL cuts power costs with gas switch at Lagos Sheraton
Nigerian listed hospitality group Ikeja Hotels PLC has slashed power costs at its Sheraton Lagos property by switching to gas, targeting an 18-month payback while meeting Marriott's ESG targets.
Ikeja Hotels PLC has commissioned a gas generator and gas burner at the Sheraton Lagos Hotel, shifting the property away from diesel power to cut operating costs and align with Marriott International’s environmental targets. The hotel also installed new boilers as part of the upgrade.
The owning company purchased the equipment outright. General manager Martins Brednoord confirmed the capital expenditure is fully owned by Ikeja Hotels, rather than rented, and managed by the Sheraton team. Ikeja Hotels is listed on the Nigerian Exchange Group under the ticker IKEJAHOTEL.
The financial returns on the investment are already materialising. During the testing phase prior to commissioning, the hotel recorded a significant drop in power costs compared to running diesel engines, which have been plagued by high fuel prices and steep maintenance expenses. “We are looking at an 18-month return on investment,” Brednoord said.
Operationally, the gas generator now serves as the property's primary power source, with diesel relegated strictly to backup. Director of engineering Maged Ibrahim noted the switch drastically reduces localized soot, noise, and CO2 emissions. He added that the hotel has also introduced a small solar power contribution and an electric vehicle charging station to further support Marriott’s 2030 sustainability goals.
Beyond environmental compliance, the project highlights a shift in the relationship between the property's operator and owner. Managing director Theophilus Eniola Netufo said this marks the first time in the company's history that the operator and owner have collaborated directly to execute a capital project.
Netufo framed this operational efficiency drive as part of a broader financial improvement for the hospitality group, which was founded in 1972 and owns major luxury assets. He noted that by leveraging this synergy to deliver better services and improve the bottom line for stakeholders and fund providers, the stock has gained favour. “The company has become an investor delight. That was not the case before,” he said.
