Ikeja Hotel reports N6.72bn annual loss amid COVID-19
Ikeja Hotel Plc has posted a loss after tax of N6.72 billion for the 2020 financial year, compared with a profit after tax of N834.95 million a year earlier.
The hospitality company reported a loss before tax of N7.34 billion last year, compared with a profit before tax of N1.15 billion in 2019.
Its revenue plunged by 59.50 per cent to N5.07 billion in 2020 from N12.52 billion a year ago, according to its audited financial statements released on Friday.
Ikeja Hotel said in a statement that the performance reflected the full impact of the COVID-19 pandemic, which shut down the economy, especially the hospitality business, from March 2020.
“The lockdown for seven months of our hotel assets brought down unprecedentedly room sales to its lowest ebb in history,” it said.
The company said the value of one of its subsidiaries’ assets amounting to N5.1 billion was impaired (investment property N4.63 billion, work in progress N473 million) due to notice of revocation issued by the Lagos State Government on the investment property.
It has, however, challenged this in court, and is hopeful that the case will be resolved in its favour, according to the statement.
“Despite this result, the company remains solvent, and the fundamentals remain strong. With strategic responses of the Board of Directors and management, coupled with availability of COVID-19 vaccine, the business will hopefully steadily pick up,” it said.
Ikeja Hotel said on its website that it has direct or indirect ownership and control of three of Nigeria’s five-star hotels – Sheraton Lagos Hotel, Sheraton Abuja Hotel, and Federal Palace Hotels & Casino.
