Ikeja Hotel reports N8.19 billion pre-tax profit in 9M 2026, up 15%.

Ikeja Hotel Plc has reported a pre-tax profit of N8.19 billion for the nine months ended September 30, 2026, representing a 15.10% increase from N7.12 billion recorded in the corresponding period of 2025,

According to its unaudited consolidated financial statements, however, in the third quarter of 2026, pre-tax profit declined by 14.52% to N2.08 billion from N2.44 billion in Q3 2025.

The hospitality group’s nine-month revenue increased by 4.84% to N19.41 billion, compared with N18.52 billion in the previous year, while profit after tax rose by 14.22% to N5.31 billion.

The growth in pre-tax profit came despite higher operating expenses, supported by increased finance income and the absence of the investment-related loss recorded in the corresponding period of 2025.

Key Highlights

• Revenue: N19.41 billion (Up 4.84% YoY from N18.52 billion).
• Cost of sales: N10.39 billion (Up 9.36% YoY from N9.50 billion).
• Gross profit: N9.02 billion (Up 0.08% YoY from N9.02 billion).
• Administrative expenses: N2.15 billion (Up 36.09% YoY from N1.58 billion).
• Operating profit: N6.22 billion (Down 9.76% YoY from N6.90 billion).
• Finance income: N1.97 billion (Up 27.03% YoY from N1.55 billion).
• Earnings per share: 245 kobo (Up 13.95% YoY from 215 kobo).
• Total assets: N80.96 billion (Up 4.54% from N77.44 billion as of December 2025).
• Cash and cash equivalents: N35.66 billion (Up 7.54% from N33.16 billion as of December 2025).

Driving the numbers

Ikeja Hotel’s nine-month results reflect modest revenue growth alongside rising operating costs, with non-operating income contributing significantly to the improvement in pre-tax profitability.

• Revenue increased to N19.41 billion from N18.52 billion in the same period of 2025, representing additional revenue of N896.69 million.
• However, third-quarter revenue declined by 3.53% to N6.16 billion from N6.38 billion in Q3 2025.

Ikeja Hotel’s revenue growth was primarily driven by its Rooms and Food & Beverage businesses, which jointly accounted for 94.66% of total revenue.

• Room revenue increased by 2.93% to N13.58 billion from N13.19 billion, contributing approximately 69.94% of total revenue.
• Food and Beverage revenue rose by 8.08% to N4.80 billion, while Miscellaneous Income increased by 14.66% to N940.20 million.
• Revenue from Minor Operating Departments grew by 47.12% to N96.64 million, although its contribution to total revenue remained relatively small.

Cost pressures were more pronounced than revenue growth during the nine-month period.

• Cost of sales increased by 9.36% to N10.39 billion from N9.50 billion, outpacing the 4.84% rise in revenue.

As a result, gross profit remained relatively unchanged at N9.02 billion, compared with N9.02 billion in the corresponding period of 2025.

Administrative expenses also increased significantly, rising by 36.09% to N2.15 billion from N1.58 billion, while sales and marketing expenses increased to N714.49 million from N630.71 million.

• These higher expenses contributed to a decline in operating profit, which fell by 9.76% to N6.22 billion from N6.90 billion.

Despite the decline in operating profit, the group recorded stronger pre-tax earnings for the nine-month period.

• Finance income increased by 27.03% to N1.97 billion from N1.55 billion, providing additional support to profitability.
• Another significant contribution was the absence of the N1.33 billion investment-related loss recorded in the comparative nine-month income statement for 2025.

Together, these factors contributed to the increase in pre-tax profit to N8.19 billion, despite the deterioration in operating profitability.

Tax expenses rose to N2.89 billion from N2.47 billion, while profit after tax increased to N5.31 billion from N4.65 billion.

Balance sheet

On the balance sheet, total assets increased to N80.96 billion as of September 2026, compared with N77.44 billion at the end of December 2025, driven by a combination of factors.

• Cash and cash equivalents increased by N2.50 billion, or 7.54%, to N35.66 billion from N33.16 billion. This was the largest contributor to asset growth, accounting for approximately 71% of the net increase in total assets.
• Capital work in progress increased by N1.53 billion to N2.25 billion from N721.06 million, reflecting additional investment in projects under development.
• Property, plant and equipment increased by N297.05 million to N23.30 billion from N23.00 billion.

These movements more than offset reductions in receivables, highlighting cash accumulation and capital investment as the major contributors to asset growth.

On the financing side, retained earnings increased by approximately N3.34 billion, supporting the expansion in shareholders’ equity.

However, operating cash flow weakened, as net cash generated from operating activities declined by 33.12% to N4.92 billion from N7.35 billion in the comparable nine-month period of 2025.

The group’s net cash inflow stood at N2.50 billion during the period, down 63.35% from N6.82 billion in the corresponding period of 2025

Overall, the results indicate that Ikeja Hotel’s growth in pre-tax earnings was supported more by finance income and the absence of prior-year investment losses than by improvements in its underlying hotel operating profitability.

Market reaction

Ikeja Hotel Plc’s shares closed at N45.00 per share on Monday, October 26, 2026, on the Nigerian Exchange.

The stock began 2026 at N41.90 per share and has gained 7.40% year-to-date, equivalent to a price increase of N3.10 per share.