Ikeja Hotels Plc has released its 2025 full-year financial results, reporting a significant jump in profitability driven by improved hotel operations, stronger occupancy rates, and enhanced revenue performance across its portfolio.
The unaudited financial statements, filed with the Nigerian Exchange (NGX) on January 27, 2026, show that the hospitality group delivered a profit before tax of ₦12.56 billion for the year ended December 31, 2025 representing a 47.3 % increase from the ₦8.54 billion recorded in 2024.
📊 Key Financial Highlights (FY 2025 vs FY 2024)Revenue: ₦25.84 billion up 37.8 % year-on-year. 1Cost of Sales: ₦13.11 billion — up 17.3 %. Gross Profit: ₦12.74 billion — up 68 %. Operating Profit: ₦9.94 billion — up 18.6 %. Finance Income: ₦2.62 billion — up 75.8 %. Finance Cost: Nil (2024: ₦1.33 billion). Profit Before Tax: ₦12.56 billion — up 47.3 %. Profit After Tax: ₦8.30 billion — up 13.9 %. Earnings per Share: 384 kobo — up 14 %. Total Assets: ₦94.88 billion (2024: ₦83.67 billion).
🏨 Drivers of Strong Performance The robust profit growth was mainly supported by:
Stronger Hotel Operations Ikeja Hotels recorded increased room occupancy rates and the ability to command higher room rates, reflecting renewed demand from both corporate and leisure travellers.
Rising Ancillary IncomeAdditional revenue streams including event hosting, food and beverage services, and other hospitality offerings contributed significantly to overall revenue growth.
Improved Cost ManagementThe company recorded healthier gross margins and managed operating costs effectively, contributing to solid gross and operating profit gains.
Stronger Balance Sheet and LiquidityTotal assets expanded to ₦94.88 billion, while current assets particularly cash and cash equivalents grew materially, enhancing the group’s financial flexibility.
📈 Management CommentaryCompany executives attributed the year’s performance to strategic operational improvements and a favourable hospitality market environment.
They highlighted that higher occupancy, improved pricing power, and diversified income sources underpinned the year’s strong results.
Management also noted ongoing capital investments in facilities and infrastructure, positioning the group to sustain growth into 2026.
Bottom LineIkeja Hotels Plc’s 2025 financial results demonstrate a notable turnaround and sustained growth trajectory, underscoring the company’s ability to capitalise on rising demand in Nigeria’s hospitality sector.
With profitability up nearly 50 % and a stronger financial base, the hotel group is strategically positioned for continued expansion.
Image Credit: Nairametrics
Source: Nairametrics
