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.
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.
Ikeja Hotel’s revenue growth was primarily driven by its Rooms and Food & Beverage businesses, which jointly accounted for 94.66% of total revenue.
Cost pressures were more pronounced than revenue growth during the nine-month period.
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.
Despite the decline in operating profit, the group recorded stronger pre-tax earnings for the nine-month period.
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.
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.
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.
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.
