Ikeja Hotel Plc reports N6.12 billion pre-tax profit in H1 2026

Ikeja Hotel Plc, in its unaudited H1 2026 results for the period ended June 2026, reported a profit before tax of N6.12 billion, representing a 31.03% increase from N4.67 billion recorded in H1 2025.

Profit after tax stood at N4.06 billion, up 30.5% from N3.11 billion in the prior-year period, while earnings per share increased to 188 kobo from 144 kobo.

The improved performance was driven by revenue growth, with revenue for the period rising to N13.25 billion, representing a 9.2% increase from N12.13 billion in H1 2025, supported by stronger contributions from the company’s rooms and food and beverage operations.

The company’s rooms segment remained the largest revenue contributor, generating N9.31 billion, while food and beverage revenue contributed N3.16 billion during the period.

Key Highlights (H1 2026 vs H1 2025)

• Revenue: N13.25 billion (Up 9.2% YoY from N12.13 billion)
• Cost of Sales: N6.83 billion (Up 10.7% YoY from N6.17 billion)
• Gross Profit: N6.43 billion (Up 7.4% YoY from N5.96 billion)
• Operating Profit: N4.72 billion (Up 2.7% YoY from N4.57 billion)
• Total Assets: N82.16 billion (Up 6.1% from N77.44 billion as of FY 2025)
• Cash and Cash Equivalents: N36.80 billion (Up 11.0% from N33.16 billion as of FY 2025).
• Total Equity: N47.44 billion (Up 7.3% from N44.24 billion as of FY 2025)
• Retained Earnings: N31.05 billion (Up 11.8% from N27.77 billion as of FY 2025)

Driving the numbers

Ikeja Hotel’s H1 2026 performance was driven by growth across its main operating segments, with rooms continuing to account for the largest share of revenue.

• Revenue from rooms increased to N9.31 billion from N8.56 billion, contributing 70.2% of total revenue.
• Food and beverage revenue also improved to N3.16 billion from N2.91 billion, representing about 23.8% of total revenue.
• The company’s gross profit increased to N6.43 billion, although the gross margin moderated slightly to 48.5% from 49.1%, reflecting the impact of higher operating costs.
• Total cost of sales increased by 10.7% to N6.83 billion, mainly driven by higher food and beverage costs, administrative expenses, property maintenance costs, and utilities.
• Administrative and general expenses rose to N1.59 billion from N1.35 billion, while property operations and maintenance costs increased to N749.36 million from N631.24 million.
• Utility costs also increased to N1.34 billion from N1.22 billion, reflecting higher operating expenses within the hospitality business.

Despite the increase in operating costs, profit before tax rose significantly to N6.12 billion, supported by higher finance income of N1.40 billion compared with N842.37 million in H1 2025.

Balance sheet

On the balance sheet, Ikeja Hotel maintained a strong financial position, with total assets increasing to N82.16 billion from N77.44 billion at the end of 2025.

The growth was supported by higher cash balances, which increased to N36.80 billion from N33.16 billion.

Equity also strengthened during the period, rising to N47.44 billion from N44.24 billion, driven mainly by higher retained earnings, which increased to N31.05 billion from N27.77 billion.

The company’s working capital position remained positive, with current assets of N56.86 billion exceeding current liabilities of N31.39 billion, resulting in working capital of N25.47 billion.

The current ratio stood at 1.81x, indicating that the company had sufficient short-term assets to cover its obligations.

Market reaction

Ikeja Hotel Plc is currently the 61st most capitalized company on the NGX, with a market capitalization of N101 billion as of close of trading on July 22, 2026.

The company began in 2026 with a share price of N41.90 and has risen to N46.55, representing 11.1% year-to-date.