Ikeja Hotel Plc Grows Profit as Revenue Rises to ₦25.8bn in 2025

Ikeja Hotel Plc recorded improved financial results in the 2025 financial year as higher revenue, stronger operating profit, and increased finance income bolstered performance despite rising operating and administrative costs.

For the year ended December 31, 2025, the hospitality group reported revenue of ₦25.84 billion, up from ₦18.75 billion in 2024, representing a 38 percent year-on-year increase.

The growth reflects improved room occupancy, higher average room rates, and stronger performance across food, beverage, and ancillary services.

Cost of sales rose to ₦13.11 billion, from ₦11.18 billion a year earlier, but revenue growth outpaced cost increases, lifting gross profit to ₦12.74 billion, compared with ₦7.57 billion in 2024. This translated into a notable improvement in gross margin.

Operating profit increased to ₦9.94 billion, up from ₦8.38 billion in the previous year, despite higher sales and marketing expenses and a rise in administrative costs. The growth in operating profit highlights improved operating leverage and stronger core business performance.

Finance income contributed significantly to earnings, rising to ₦2.62 billion in 2025 from ₦1.49 billion in 2024. This was supported by improved cash balances and investment income during the period. The group did not record finance costs in 2025, compared with a charge in the prior year.

As a result, profit before tax rose to ₦12.56 billion, from ₦8.54 billion in 2024. Income tax expense increased to ₦4.25 billion, reflecting higher taxable earnings. Profit after tax from continuing operations stood at ₦8.30 billion, compared with ₦7.29 billion a year earlier.

Profit attributable to equity holders of the parent company amounted to ₦8.19 billion, up from ₦7.16 billion in 2024. Earnings attributable to non-controlling interests declined to ₦116.94 million, from ₦135.04 million, indicating improved earnings concentration for shareholders of the parent company.

Fourth-quarter performance remained solid, with Q4 2025 profit attributable to equity holders rising to ₦2.33 billion, compared with ₦1.99 billion in the corresponding period of 2024. Revenue in the fourth quarter also increased to ₦7.33 billion, from ₦6.16 billion.

Earnings per share reflected the stronger performance. Basic earnings per share increased to 384 kobo for the full year, up from 337 kobo in 2024. For the fourth quarter, EPS rose to 109 kobo, compared with 94 kobo in the prior-year quarter.

Total comprehensive income for the year amounted to ₦8.30 billion, as no other comprehensive income items were recorded during the period. The entire comprehensive income was attributable largely to equity holders of the parent company.

Overall, Ikeja Hotel Plc’s 2025 results underscore a recovery-driven expansion in revenue and profitability, supported by stronger hospitality demand and improved operational performance, positioning the group for continued earnings stability amid rising cost pressures.