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Ikeja Hotels Nigeria Plc has returned to profit, thanks to cost control measures put in place by the owners of the hospitality giant even amid a challenging macroeconomic environment.
The hotel experienced a slowdown in occupancy during the pandemic, but it has been gradually coming back as it is focused on reducing operating expenses and diversification of revenue stream.
The hospitality giant posted a profit after tax (PAT) of N799.80 million in December 2023 from N3.93 billion as at December 2022.
Analysis by MoneyCentral shows the stellar performance was supported by a reduction in total costs (cost of sales plus administrative/distribution expenses) by 70.82 percent to N9.05 billion to make up for a drop in revenue.
Sales were down 13.65 percent to N11.11 billion in the period under review from N12.89 billion the previous year.
The hospitality industry is spared from the economic slowdown caused by the bold reforms of president Bola Tinubu such as the removal of subsidies on fuel and the unification of the foreign exchange rate.
There has been tepid business activities, while rising inflation on the back on foreign exchange scarcity and continuous hike in the interest rate to stabilise price rises have compounded the woes of consumers.
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