Ikeja Hotel sustains profitability driven by cost efficiency
Efforts by the new management of Ikeja Hotel to turnaround the fortunes of the company may have started yielding result as the company achieved nine percent growth in revenue with 83 percent increase in profit for the 2018 financial year.
Specifically, the company recorded revenue of N13.3 billion, up from N12.1 billion posted in the corresponding period in 2017, while Profit After Tax (PAT) rose from N603 million to N1.1 billion in 2018.
The Chief Operating Officer of the company, Theophilus Eniola Netufo while addressing stockbrokers at the ‘Facts Behind Figures’ of the company held in Lagos yesterday, linked the improved performance in profit to effective cost management and planning established by the new management.
Other members of the board of Ikeja Hotel in attendance at the event include: Non-Executive Director, Dr. Alex Thomopulos, General Manager, Barry Curran and Company Secretary, Mrs. Chisom Umeofia. Netufo also attributed the firm’s profitability to concerted efforts by the board and management to entrench sound corporate governance and effective motoring of operations of the company.
He expressed the firm’s optimism to retain its prime position as the flagship of hospitality and tourism business in Nigeria.“In an environment where there is peace, growth must truly be ensured. Now that peace has returned to the company, the management, through the direction of the board and operators, has come up with some measures to ensure that we comply with statutory obligations.
“Since the inauguration in May 2017, the board has gone to work fully, meetings have been held, policies put in place, and there is monitoring and control of activities of the management; no wonder the report we are presenting today.
“The company is now being run under sound corporate governance and best practices. The Marriott team, a team of sales and marketing experts, during the year established a sales and marketing directorate who look for high premium clients to come to the hotel. Many high net worth businesses are being attracted to the hotel by efforts of Marriot.”
According to him, the new management has instituted zero tolerance to default as the company currently files its financial reports to the regulatory authorities at the appropriate time.“Over the years, Ikeja hotel has been recording cash penalties and interests; when the new board took over, the management resolved that there must be zero tolerance to default, all our reports are returned at the appropriate time, “he added.
On the future outlook, he said the management was poised to ensure sustained profitability of the company in the years ahead.He said the company has concluded plans to upgrade its public areas, as well as the first and fourth floors of the hotel to meet international standards and achieve competitive advantage.He added that the company would also embark on the expansion of its banquet facility to generate additional revenue for the hotel.
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