Ikeja Hotels Plc delivered a strong earnings performance in the 2025 financial year, recording a profit before tax of N12.56 billion, up 47.3 per cent from N8.54 billion in 2024, driven by stronger hotel operations, higher finance income and the elimination of finance costs.
The performance was disclosed in the company’s unaudited financial statements filed with the Nigerian Exchange (NGX) on January 27, 2026.
Revenue rose sharply by 37.8 per cent to N25.84 billion, supported by improved room occupancy, higher room rates and increased event-related activities across the group’s hotel portfolio.
Despite a rise in operating costs, revenue growth significantly outpaced expenses. Cost of sales increased by 17.3 per cent to N13.11 billion, pushing gross profit up 68.0 per cent to N12.74 billion. Operating profit rose 18.6 per cent to N9.94 billion, reflecting better operating leverage and margin expansion.
A key boost to earnings came from the balance sheet. Finance income jumped 75.8 per cent to N2.62 billion, while finance costs fell to zero, compared with N1.33 billion in 2024. This significantly lifted pre-tax profitability.
After tax, profit for the year stood at N8.30 billion, representing a 13.9 per cent increase, while earnings per share rose to 384 kobo. The company declared an interim dividend of 3 kobo per share.
Total assets grew to N94.88 billion as at December 31, 2025, from N83.67 billion a year earlier. Cash and cash equivalents increased to N33.15 billion, up from N22.74 billion, significantly improving liquidity.
Shareholders’ equity rose to N38.52 billion, supported by retained earnings of N22.19 billion, while total liabilities increased moderately to N56.28 billion, indicating manageable leverage.
Ikeja Hotels’ 2025 performance highlights improved earnings quality, driven largely by core hotel operations rather than one-off gains. The removal of finance costs materially strengthened profitability, while rising operating expenses were absorbed by faster revenue growth.
Higher cash balances and a stronger equity position enhance financial flexibility, although sustained cost discipline will be critical to protecting margins.
On the Nigerian Exchange, Ikeja Hotels shares are down about 15 per cent year-to-date in 2026, following a strong rally in 2025 on the back of earnings recovery.
