Ikeja Hotel Climbs by 15% after Strong Earnings Growth

Ikeja Hotel Climbs by 15% after Strong Earnings Growth

Ikeja Hotels Climbed by 15% as the company’s market value reached N22.312 billion on the Nigerian Exchange trading platform. The hospitality stock price settled at N8.05 on Friday from N7 at the beginning of trading session last week. 

The buying momentum came after Ikeja Hotels announced a significant surge in earnings performance for the third quarter of 2024. 

Details from the hospitality company’s unaudited financial statement showed that profit increased by 241% to N2 billion at the end of September 2024 from N587 million in the comparable period in 2023. 

In the period, the company revenue grew by 64% year on year from N7.692 billion to N12.598 billion on the back of an increase occupancy ratio and price adjustments due to the inflation condition in Nigeria. 

Gross profit came at 77% year on year above the previous year’s record, up from N2.688 billion to N4.767 billion at the end of September 2024 due to slow costs of sales growth versus revenue growth. 

Ikeja Hotel costs of sales increased by 57% year on year to settle at N7.830 billion from N5.003 billion 12 months earlier, but gross margin dipped to 62% from 65% amidst heightened competition in the hospitality industry. 

Ikeja Hotel Plc. owns the Sheraton Lagos Hotel and is a core investor in Hans Gremlin Nigeria Limited. It also has significant shareholding in the Tourist Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos). 

The hotel was managed and operated by Starwood Eame License and Services Company BVBA up to June 2017 under an agreement dated 31 October 1980 and renewed 1 April 2008. 

Subsequently, Marriot International took over the management of the Sheraton brand in June 2017 due to the acquisition of Starwood Eame License and Services Company BVBA. #Ikeja Hotel Climbs by 15% after Strong Earnings Growth

Nigeria’s Top 5 Banks Total Value Climbs to N5.63Trn or $3.52bn