Ikeja Hotels Plc has recorded a 57 percent increase in revenue for the first quarter of 2025, driven by higher lodging demand, its latest financial results show.
According to the company’s unaudited financial report from the Nigerian Exchange Group (NGX), revenue rose to N6.1 billion for the first quarter ended March 31, 2025, from N3.8 billion in the previous quarter.
The room sales segment remains the dominant revenue driver, contributing N4.2 billion of the total earnings, while food and beverages sales contributed N1.4 billion.
Notably, its hotel business maintained a higher profit margin of 68.9 percent compared to other revenue streams, making it a key pillar of the company’s financial strength.
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The principal business of Ikeja Hotel Plc is the provision of services in the hospitality industry, including the development of other tourist facilities.
It has continually expanded its participation in Nigeria’s hospitality industry through the development and acquisition of hotel and tourist facilities.
Today, Ikeja Hotel boasts direct ownership and control of three of Nigeria’s leading five-star hotels, namely, Sheraton Lagos Hotel, Sheraton Abuja Hotel, and Federal Palace Hotels & Casino.
Despite the rise in the cost of sales and administrative expenses, Ikeja Hotels continues to leverage market trends and strategic investments to sustain its upward momentum in Nigeria’s evolving hospitality sector as more consumers prioritise quality lodging experiences.
The company’s gross profit grew 93.8 percent to N3.1 billion from N1.6 billion in the previous year, while pre-tax surged by 194 percent to N2.4 billion from N845.4 million in Q1 2024.
Read also: Ikeja Hotels rakes in N18.8bn in 2024 on rising demand
The Group’s after-tax profit rose by 13.3 percent to N1.7 billion from N1.5 billion, and profits from core operations rose 151.5 percent to N2.4 billion from N968.3 million.
Further analysis revealed that the cost of sales rose by 36.4 percent to N3 billion from N2.2 billion. Additionally, sales and distribution expenses increased by 37.6 percent to N210.5 million, while administrative expenses stood at N519.2 million.
In Q1 2025, Ikeja Hotel reported total assets of N86.03 billion, reflecting a 2.83 percent increase. Retained earnings also grew, rising to N15.8 billion, marking an 11.32 percent.
The group declared a final dividend of 15 kobo gross for every ordinary share of 50 kobo each, payable to shareholders listed on the register as of the close of business on July 4, 2025. At the close of trading on April 24, 2025, Ikeja Hotel shares were priced at N11.00.
