Improved strategies, cost efficiency lift Ikeja Hotel’s full year revenue to N6.1 billion

Shareholders applaud board for sustained profitability

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

Reviewing its performance at the 45th yearly general meeting 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 (PAT) 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.

The group’s PAT reduced from a loss of N6.7 billion in 2020 to N180.614 million in 2021.

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.

Besides, shareholders unanimously endorsed re-election of the Chief Operating Officer of The Guardian Newspapers Limited, Dr. Alexander Thomopulos, as a director of the hotel. The Executive Director of The Guardian Newspapers Limited, Toke Alex-Ibru, is also a member of the board. The Publisher of The Guardian, Lady Maiden Alex-Ibru was also present at the meeting.

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.”

Managing Director of the company, Theophilus Netufo, while fielding questions from journalists 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, and I was asked to supervise the company as Group Managing Director, with collaboration and support of the board, we had no choice but turn the company around.

“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.”

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 Lady Maiden Alex-Ibru for becoming an active shareholder. I also 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.

He added: “ I am very excited that we are building and consolidating what we did in 2021, going by the half year result. We must brace up to face the macro economic challenges and become more profitable because competition is becoming tougher on a daily basis.”