Cost Efficiency Lifts Ikeja Hotel’s 2021 Revenue To N6.1bn

Improved business strategies and aggressive cost management by the new board of Ikeja Hotel Plc have yielded results as the firm posted N6.1 billion revenue in its 2021 operations.

Reviewing its performance at the 45th Annual General Meeting (AGM) held in Lagos, yesterday, the chairman, Anthony Idigbe, said the Company’s revenue increased from N3.1 billion in 2020 to N6.1 billion in 2021, while operating profit for the year moved from a loss position of N792.4 million in 2020 to a profit of N1.161 in 2021.

The company’s profit after tax also stood at N142.9 million, against N1.2 billion loss recorded in 2020.

Idigbe, who was represented by a director of the company, Mrs. Fadeke Olugbemi, also stated that the consolidated revenue for the Group increased from N5.068 billion in 2020 to N9.868 billion during the review period, with operating profit of N1.135 billion, higher than operating loss of N6.5 billion in 2020.

He linked the improved performance to growing occupancy return to pre-COVID-19 levels, in addition to enhanced business strategies and aggressive cost management efforts, assuring shareholders of the board’s commitment to ensuring directors continue to make valuable contribution to the growth of the business.

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Idigbe said, “the hospitality industry has been making a slow but steady comeback to normalcy while adapting to the new normal of reliance on digitisation and diversification in achieving its objectives.

“The hotel experienced an unprecedented decline in occupancy during the pandemic. And to tackle the challenge, the company focused on reducing operating expenses and diversification of revenue streams. The board continues to work towards its vision of transforming the Nigerian hospitality industry through innovative ideas.”

The managing director of the Company, Theophilus Netufo, expressed optimism that the firm would sustain its prime position as the flagship of hospitality and tourism business in Nigeria.

“Since the new board came, what we do, as strategy, is to set up the goal we want to achieve, how we will achieve it, and also removed hurdles and bottlenecks on the way. And ever since, things have been moving, in spite of economic challenges,” he said.

According to him, the company has concluded plans to commence comprehensive refurbishment of the hotel to enhance its competitiveness in the industry.

Netufo also disclosed that the company would diversify into related business and develop products that would help generate more income and enhance profitability.

Earlier, shareholders of the company applauded the board for efficient running of affairs of the company and repositioning.

Specifically, the former secretary general of Independent Shareholders Association, Adebayo Adeleke, said: “I commend the board for the result we are reviewing today. If we can maintain this tempo and push the frontier of the business, both in top and bottom line, we would remain competitive in the industry.”