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Ikeja Hotel Plc has posted record profit in the first quarter of 2024 propelled by growing occupancy return to pre-pandemic level and aggressive cost management efforts even amid inflationary pressure.
The hospitality giant’s focus on reducing operating expenses and diversifying revenue streams enabled it to surmount the macroeconomic headwinds.
For the first three months through March 2024, Ikeja Hotel’s net profit surged by 2,526.12 percent to N604.12 million from N23 million as at March 2023.
Sales were up 89.75 percent to N3.89 billion in March 2024 from N2.05 billion the previous year.
A breakdown of revenue figures shows sales from Rooms increased by 115.07 percent to N2.71 billion while sales from Food and Beverages were up 70.09 percent to N1 billion.
The company made a profit from core operations as operating profit rose by 301.10 percent to N968.18 million in the period under review from 243.65 million the previous year.
The hospitality industry has overcome the coronavirus pandemic that disrupted business activities and this is good news for shareholders who will be looking forward to another dividend payout in 2024.
However, there are concerns that rising inflation and high borrowing costs might undermine future earnings as a lot of companies are struggling.
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