Ikeja Hotel reports N1.74bn loss in 2020

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By Kayode Tokede

Ikeja Hotel Plc, has released its consolidated statement of financial position as at December 31, 2020 with a sharp decline in group revenue to N1.466 billion in the fourth quarter (Q4) from N3.397 billion in same period in 2019.

The result released at the Nigerian Stock Exchange on Monday showed that group revenue for the full year dropped to N5.069 billion from N12.516 billion in 2019.

The result showed that the group sunk into loss in the Q4 at N338.319 million from N253.334 million profits in Q4 2019.

For the full year, the group suffered N1.74 billion loss from N834.95 million profits in 2019.

The group comprises Ikeja Hotel Plc. and its subsidiary – Hans Gremlin Limited, a special purpose vehicle which holds 51per cent of the ordinary shares in Capital Hotels Plc, Charles Hampton and IHL Services Limited with 100 per cent shareholdings.

Moreover, the company, formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns the Sheraton Lagos Hotel, and is a core investor in Hans Gremlin Nigeria Limited (Owners of Capital Hotel Plc. It also has significant shareholding in the Tourist Company of Nigeria Plc. (Owners of Federal Palace Hotel & Casino, Lagos).

The Hotel was managed and operated by Starwood Eame License and Services Company BVBA up to June 2017 under an agreement dated 31 October 1980 and renewed 1 April 2008. Subsequently Marriot International took over the management of the Sheraton brand from June 2017 due to acquisition of Starwood Eame License and Services Company BVBA.

The principal activities of the group are operation of hotels and restaurants, apartment letting, recreational facilities, night clubs and business centre services, advisory and consultancy services.