Ikeja Hotel Plc announced a significant financial performance in its unaudited H1 2026 results, reporting a profit before tax of N6.12 billion. This represents a 31.03% increase from the N4.67 billion recorded in the corresponding period of H1 2025.
The company's profit after tax also saw a substantial rise, climbing 30.5% to N4.06 billion from N3.11 billion in the prior-year period. Consequently, earnings per share improved to 188 kobo from 144 kobo.
This improved performance was primarily driven by robust revenue growth, which increased by 9.2% to N13.25 billion in H1 2026, up from N12.13 billion in H1 2025. Stronger contributions from the company’s rooms and food and beverage operations underpinned this growth.
The rooms segment continued to be the largest revenue generator, contributing N9.31 billion, an increase from N8.56 billion in H1 2025. Food and beverage revenue also saw an improvement, rising to N3.16 billion from N2.91 billion, accounting for approximately 23.8% of total revenue.
Despite the revenue growth, the company experienced higher operating costs. The total cost of sales increased by 10.7% to N6.83 billion from N6.17 billion, mainly due to elevated food and beverage costs, administrative expenses, property maintenance, and utilities.
Administrative and general expenses rose to N1.59 billion from N1.35 billion, while property operations and maintenance costs increased to N749.36 million from N631.24 million. Utility costs also climbed to N1.34 billion from N1.22 billion, reflecting increased operational expenses within the hospitality business.
Gross profit for the period increased to N6.43 billion, although the gross margin slightly moderated to 48.5% from 49.1%. However, the significant rise in profit before tax was supported by higher finance income, which reached N1.40 billion compared with N842.37 million in H1 2025.
On the balance sheet, Ikeja Hotel maintained a strong financial position, with total assets increasing to N82.16 billion from N77.44 billion at the end of FY 2025. This growth was bolstered by higher cash and cash equivalents, which rose to N36.80 billion from N33.16 billion.
Total equity also strengthened during the period, increasing to N47.44 billion from N44.24 billion, primarily driven by higher retained earnings, which grew to N31.05 billion from N27.77 billion. The company’s working capital position remained positive at N25.47 billion, with current assets of N56.86 billion exceeding current liabilities of N31.39 billion.
The current ratio stood at 1.81x, indicating that Ikeja Hotel possessed sufficient short-term assets to cover its obligations.
As of the close of trading on July 22, 2026, Ikeja Hotel Plc was the 61st most capitalized company on the NGX, with a market capitalization of N101 billion. The company's share price began 2026 at N41.90 and has since risen to N46.55, representing an 11.1% year-to-date increase.
