Ikeja Hotel Plc has reported a 229.97 percent growth in profit to N397.54bn for the first half of 2023, compared to N 120.48bn in the same period in 2022.
This is according to its unaudited consolidated financial statements for the six months made available on Wednesday.
The revenue of the group, however, declined by 33.73 per cent to N4.567bn from N6.89bn.
In its 2022 financial report, Ikeja Hotel’s revenue grew to N12.8bn from N9.8bn in the corresponding period of 2021 on the back of corporate governance standards and an improved operational model adopted by the new board of the hotel.
However, the group recorded an operating loss of N2.4bn in 2022 compared to a profit of N1.1bn in 2021.
The Chairman of Ikeja Hotel Plc, Anthony Idigbe, addressing shareholders at the 46th Annual General Meeting of the group held in Lagos recently, said the decline was primarily due to the company’s divestment from Capital Hotel Plc, coupled with the effect of COVID-19 on the business, among other challenges.
He said, “It has been established that high levels of corporate governance standards are fundamental to the sustainable operation of any corporate organisation. The board is committed to ensuring that directors continue to make valuable contributions to the growth of the business.
“While the industry faced unprecedented closures and declining occupancy rates, we remained steadfast in our commitment to providing a safe and exceptional guest experience.
“Our focus on reducing operating expenses and diversifying revenue streams enabled us to navigate through these turbulent times. We are pleased to share that our efforts have yielded positive results, and we are steadily regaining momentum.”
Meanwhile, shareholders at the meeting approved a dividend of 7.5 kobo for the 2022 financial year. The board also declared a bonus issue of one for every three shares held by shareholders.
According to Idigbe, this would be achieved through the consistent adoption of emerging technologies, investing in people and exploring new horizons to stay ahead of trends in the industry.
He noted that the entry of new competitors had made the hospitality business increasingly competitive, which had made it crucial for the company to expedite its plans for property renovation.
With the development, he said the group had adopted alternative energy generation solutions to minimise operating costs, remain competitive with international standards and increase its market in the industry.
Earlier, shareholders of the company applauded the board for efficiently running the affairs of the company and the dividend payout amid a harsh operating environment.
The President of the Progressive Shareholders Association, Boniface Okezie, said, “Holding forth for seven years, the board has done very well, and the regulators should let us know the outcome of the forensic audit. We need to move forward and expand this business.”
