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Ikeja Hotel Plc is considering a capital raise

Ikeja Hotel Plc may soon be considering a capital raise. The company’s management disclosed this during a Facts Behind The Figure session.

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Ikeja Hotel

Ikeja Hotel Plc may be considering a capital raise sometime in the near future. The new management of the company disclosed this yesterday during a Facts Behind The Figure session held at the Nigerian Stock Exchange.

The company recorded a revenue increase of 9.45% from N12.1 billion in 2017 to N13.2 billion in 2018. The earnings before interest and tax rose from N1.4 billion in 2018 to N1.9 billion in 2019 while profit after tax also rose by 83.12% from N603 million in 2017, to N1.1 billion in 2018.

While addressing stockbrokers, the company’s Chief Operating Officer, Theophilus Eniola Netufo, linked the improved performance in profit to effective cost of management and planning which was established by the new management team.

Olumide Bolumole, Divisional Head, Listings Business, NSE presenting the replica of the gong to Theophilus Eniola Netufo, Chief Operating Officer, Ikeja Hotel Plc

Netufo expressed his optimism that the company’s growth will be retained because measures have been put in place to ensure that statutory obligation will be complied with.

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He also stated that Ikeja Hotels made enormous savings in the 2018 financial year, due to prompt payment of all required payments to the federal government and other agencies, improved marketing and cost reduction.

“We have zero tolerance for the default. All our reports are returned at the appropriate time. We don’t wait for any government agency to slam us with fine. In 2018, we did not pay a dime. No penalty. No fine”

[READ ALSO: Berger Paints declares N188 million dividend, reveals expansion Plans]

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Speaking further, the COO disclosed that the firm would be seeking to raise capital to rehabilitate the 1st to 4th floor of the Sheraton Lagos, as well as the public area.

“The 5th and 6th floors were renovated in 2017. That has driven our revenue. The room rate is very high.

“We are looking for money to renovate the 1st, 2nd, 3rd, and 4th floor and the public area. We want to move now. We want to move as quickly as possible because many hotels are coming up, and we don’t want to be caught in the web. We want to position the hotel so we can stay competitive.

“We want to improve our banquet facilities. We see what’s happening in Lagos. (Federal Palace Hotel). We want to replicate the same thing.” 

Meanwhile, the company’s General Manager, Barry Curran, also provided some more details on the 2018 operating numbers.

“Our room growth 18/17 was 12%. That’s a big number when you consider we are a mature business. Our food and beverage growth year on year was 11%. We had about 10%/11% growth in our topline growth for the year (2018).

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“Our compset (competitive set) includes all of the big hotels on the island and mainland. There are 7 hotels in our compset we measure ourselves against. We are one of the biggest hotels, with 340 rooms.   We did 58.4% occupancy over 12 months (in 2018). The average within our in compset was 51.5%.

“Even occupancy itself is not the best measure.  We use a metric called Revpa (Revenue per available room). Our revpa for the entire year grew by 30.2%. While our compset went –0.8%. The average length of stay in our hotel is 3.5 nights.” 

In response to a question from Nairametrics about whether the firm would take up an additional stake in Federal Palace Hotel (since Sun International is in the process of divesting), the company’s COO said that would be a board decision.

Other members of the company’s board that attended the event are- the Non-Executive Director, Dr. Alex Thomopulos, General Manager, Barry Curran, and the Company Secretary, Mrs. Chisom Umeofia.

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Coronavirus

COVID-19 Update in Nigeria

On the 19th of September 2020, 189 new confirmed cases and 1 death was recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 57,145 confirmed cases.

On the 19th of September 2020, 189 new confirmed cases and 1 death was recorded in Nigeria, having carried out a total daily test of 2,609 samples across the country.

To date, 57,145 cases have been confirmed, 48,431 cases have been discharged and 1095 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 482,321  tests have been carried out as of September 19th, 2020 compared to 479,712 tests a day earlier.

COVID-19 Case Updates- 19th September 2020,

  • Total Number of Cases – 57,145
  • Total Number Discharged – 48,431
  • Total Deaths – 1,095
  • Total Tests Carried out – 482,321

According to the NCDC, the 189 new cases were reported from 15 states- Lagos (70), Plateau (37), FCT (24), Kaduna (19), Rivers (12), Oyo (5), Ogun (4), Ebonyi (3), Katsina (3), Ondo (3), Osun (3), Imo (2), Yobe (2), Ekiti (1), Nasarawa (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 18,897, followed by Abuja (5,550), Oyo (3,231), Plateau (3,229), Edo (2,611), Kaduna (2,345), Rivers (2,232), Delta (1,799), Ogun (1,762), Kano (1,734), Ondo (1,597), Enugu (1,234), Ebonyi (1,038), Kwara (1,013), Abia (881), Katsina (848), Osun (813), Gombe (799), Borno (741), and Bauchi (689).

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Imo State has recorded 559 cases, Benue (473), Nasarawa (448), Bayelsa (394),  Jigawa (322), Ekiti (314), Akwa Ibom (288), Niger (250), Anambra (232), Adamawa (230), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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Business

Just in: Lagos allows cinemas, gyms, others to reopen

In a new development, Lagos government has approved the reopening of gyms, cinemas, others.

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Lagos to construct rail line to airport terminal for international passengers, COVID-19: Lagos State to begin curfew on Sunday to disinfect metropolis, Lagos state government discharges 7 more coronavirus patients, Lagos state will reverse to full lockdown, Sanwo-Olu to virtually inaugurate projects as he presents scorecard of first year in office, Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

The Lagos State Government has announced the reopening of cinemas, gyms, and other recreational centres in the state.

According to a monitored media report, the disclosure was made by the Lagos State Government, Babajide Sanwo-Olu, during a press briefing at the Statehouse, Marina on Saturday, September 19, 2020.

The governor said, they are however expected to operate at just 33% of their capacity, which is a third of their capacity, and must comply with all safety measures.

He, however, said that other sectors of the economy such as bars, night clubs, spas, public parks, event centres, and such others are to remain closed until October when the state government will make pronouncement concerning their reopening.

The Governor said, “Henceforth, cinemas and gyms are permitted to reopen as soon as possible, with a maximum of 33% occupancy, which means that there must be a minimum of two empty seats between occupied seats; and in the case of gyms, there must be constant disinfection of machines and equipment throughout the course of the day.’

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Sanwo-Olu said that it has become inevitable for Nigerians to apply caution as some other parts of the world have witnessed a resurgence of the coronavirus disease with a possibility of further lockdowns.

He warned, “Let me make it clear that if we do not continue to maintain our guard, and sustain the adherence to all required protocols and guidelines, we will find ourselves in a situation where fresh lockdowns are inevitable. The only way to avoid this is to continue to act responsibly: maintain the required levels of hygiene, through regular handwashing and use of sanitizers, wear masks in all public places, avoid non-essential public gatherings, and maintain the prescribed levels of physical distancing at all times”

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Just in: Lagos approves resumption of full services for churches, mosques

Resumption of full services in churches and mosques has been approved by the Lagos State Government.

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Lagos dismisses levy on audio and visual contents, suspends LSFVCB boss, Lagos SEC meeting goes virtual as full lockdown commences, Partial lockdown guidelines for businesses from May 4

The Lagos State Government has announced the approval of churches and mosques to resume full services in the state. This disclosure was made by the Lagos State Governor, Babajide Sanwo-Olu, during a press briefing on Saturday, September 19, 2020, in Lagos.

According to a monitored media report, the government said mosques can hold their prayers 5 times daily, while churches can also resume weekly services. This is against the initial announcement, where worship centres were restricted to just one gathering weekly, after they were allowed to reopen on August 7, 2020, following the lockdown to contain the spread of the coronavirus disease.

Sanwo-Olu, however, warned that all safety protocols that had been announced by the government must be strictly adhered to.

Details later….

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