Ikeja Hotels Plc, a leading Nigerian hospitality company that owns the Sheraton Lagos Hotel and the Federal Palace Hotel and Casino. The company has reported a profit before tax of N12.56 billion for the 2025 financial year, representing a 47.3% increase from the N8.54 billion recorded in 2024.
Okay News reports that the impressive earnings were driven by improved room occupancy, higher pricing, and stronger event-related activities across the group’s portfolio. The company achieved a group revenue of N25.84 billion, marking a 37.8% year-on-year growth from N18.75 billion.
Zero Finance Costs Boost Bottom Line
A significant factor in the profitability surge was the complete elimination of finance costs. In 2024, the company incurred N1.33 billion in finance charges, but this dropped to zero in 2025. Additionally, finance income rose sharply by 75.8% to N2.62 billion, further amplifying pre-tax earnings.
In its filing with the Nigerian Exchange (NGX), the company stated: “This marks a sustained improvement in profitability, supported by stronger hotel revenue, rising finance income, and the elimination of finance costs.”
Key Financial Highlights (FY 2025)
| Metric | 2025 Value | YoY Change |
| Revenue | N25.84 Billion | +37.8% |
| Gross Profit | N12.74 Billion | +68.0% |
| Operating Profit | N9.94 Billion | +18.6% |
| Profit Before Tax | N12.56 Billion | +47.3% |
| Profit After Tax | N8.30 Billion | +13.9% |
| Total Assets | N94.88 Billion | +13.4% |
Balance Sheet Strength
The company’s balance sheet expanded to N94.88 billion, driven by a surge in cash and cash equivalents, which rose to N33.15 billion. Total equity attributable to shareholders also increased to N38.52 billion, supported by higher retained earnings. Despite a rise in administrative and marketing expenses, the revenue growth outpaced costs, leading to better operating margins.
