Ikeja Hotel Plc has kicked off 2025 with a powerful statement, reporting a 194.07% year-on-year surge in pre-tax profit to ₦2.48 billion in its Q1 results. This stellar performance underscores a strong rebound in Nigeria’s hospitality industry, with robust demand for accommodations and food services driving a 56.99% rise in revenue.
With a healthy balance sheet, growing retained earnings, and strong cash-generating operations, Ikeja Hotel is positioned to sustain this momentum. The company’s performance highlights its resilience and strategic positioning in a recovering hospitality sector.
While macroeconomic risks remain—particularly inflation and forex volatility—Ikeja Hotel has proven it can deliver profitable growth, making it one of the standout performers on the Nigerian Exchange in 2025.
🔑 Key Financial Highlights (Q1 2025 vs Q1 2024):
- Revenue: ₦6.1 billion ▲ +56.99%
- Room Accommodation: ₦4.2 billion
- Food & Beverage: ₦1.4 billion
- Cost of Sales: ₦3 billion ▲ +35.77%
- Gross Profit: ₦3.1 billion ▲ +85.04%
- Operating Profit: ₦2.43 billion ▲ +151.54%
- Pre-tax Profit: ₦2.48 billion ▲ +194.07%
- Sales & Distribution Expenses: ₦210.5 million ▲ +37.60%
- Administrative Expenses: ₦519.2 million ▼ -6.66%
- Total Assets: ₦86.03 billion ▲ +2.83%
- Retained Earnings: ₦15.8 billion ▲ +11.32%
- Dividend Declared: 15 kobo per share
- Share Price (as of April 24): ₦11.00
- YTD Stock Performance: ▲ +87.5%
📊 Strong Operational Performance, Efficient Cost Control
Despite inflationary pressures and rising input costs, Ikeja Hotel maintained strong margins thanks to efficient cost control. While cost of sales increased, it rose at a slower pace than revenue, expanding gross margin. Administrative expenses also declined 6.66%, providing additional leverage to operating profits.
💼 Growth Fueled by Core Hospitality Segments
Room accommodations continued to be the primary revenue driver at ₦4.2 billion, with the food and beverage segment contributing ₦1.4 billion. The strength in these segments reflects sustained demand for domestic travel, business tourism, and event-driven hospitality.
💰 Shareholder Returns and Market Confidence
The company declared a final dividend of 15 kobo per share, signaling management’s confidence in earnings sustainability and commitment to rewarding shareholders. Investors have taken note, with the stock up 87.5% year-to-date, trading at ₦11.00 as of April 24.
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