…as firm rakes N12.8bn revenue high in ’22 financial review

By Chris Onuoha

Chief Anthony Idigbe, Board chair, Ikeja Hotel Plc has said that the future of hospitality industry in the country looks bright, stating that the post Covid-19 pandemic experience in the sector shows an upward indices in the revenue sector.

Idigbe also noted that as the pandemic lockdown eased, the industry picked at a high rate with travellers, investors and hotel occupants increasing.

Disclosing this at the Company’s 46th Annual General Shareholders’ Meeting held last week in Lagos, Idigbe noted that the year in review favoured Ikeja Hotel Plc with a consolidated revenue increase of N12.8 billion at the year end of 2022.

Idigbe who is the Chairman, Board of Directors, IHPlc stated that the Company’s revenue increased by 42.62 percent from N6.1 billion in 2021 to N8.7 billion in 2022, adding that the its operating profit for the year increased from N1.1 billion in 2021 to N1.9 billion in 2022 with a profit after tax of N268 million compared to N142 million in 2021.

“The Company’s consolidated revenue increased from N9.8 billion in 2021 to N12.8 billion in 2022, moving from an operating profit of N1.1 billion in 2021 to a loss of N2.4 billion. The decline is primarily attributed to, the company’s divestiture from Capital Hotels Plc alongside the lingering effects of the Covid-19 pandemic on the business amidst other economic challenges,” Idigbe said.

Idigbe noted that the Company realised a considerable improvement in revenue generated in 2022 and declared dividend of 7.5 kobo per share, a sign of commitments on the side of the management. He also mentioned that The Tourist Company of Nigeria (TCN)’s revenue for the year ended December 31, 2022 increased from N3 billion in 2021 to N3.9 billion in 2022, adding that the hospitality revenue increased by 55 percent from N1.5 billion in 2021 to N2.3 billion in 2022. He said the Company experienced an increased loss from N2.3 billion in 2021 to N3.2 billion in 2022.

He also disclosed that Capital Hotels Plc recorded revenue of N4.1 billion after which the Company disposed of its investment in the Capital Hotels, losing controlling power and could no consolidate its finance.

Speaking to journalist at the event, Idigbe said, “I think 2022 was a promising year because it was the year we are coming out of the pandemic and we saw performance improve in terms of occupancy and then we implemented one of our restructuring efforts divesting from Capital Hotel Plc. We also saw more liquidity in the business which makes our shareholders very happy with the outcome.

“Today was a good day, and shareholders appreciated the work the Board is doing in reposition the company. They are beginning to see the result of that repositioning, divesting from stranded assets like investment in Capital Hotel, the liquidity and then, dealing with the pandemic with a good result. This is also showing that despite the competition in the industry, Ikeja Hotel Plc has remained a strong assets,” he added.

On the future outlook of the Company, he noted, “We remain optimistic about the future of the hospitality industry, particularly as we learn from the challenges and lessons of the past. The year 2022 was undoubtedly a year of resilience and adaptation for Sheraton Lagos Hotel, and we are proud of the steps we took to mitigate the impact of the pandemic.”

He however maintained that the Board will remain resolute in its vision to transform the Company and reposition it as a leading brand in the Nigerian hospitality industry.

Also speaking, the Group Managing Director and Chief Executive Officer, Ikeja Hotel Plc, Mr. Theophilus Eniola Netufo said, “We want to appreciate God for the fantastic increase in the outgoing year 2022. The terrain was tough but we did everything possible to make sure we deliver a better performance to our shareholders.

“We have declared dividend and we are giving them bonus to ensure that they are partakers having endured the worst over the years. We are laying a new foundation to move forward and carry all the stakeholders along to maintain our status quo as a socially responsible organisation. And also to make sure that stakeholders take a bit of the increase that the Company was able to make,” Netufo said.