Prime Business Africa
Ikeja Hotel outperformed Transcorp Hotels in the first quarter (Q1) of 2026, as the former’s topline and bottom line outstripped that of the latter, according to Prime Business Africa’s (PBA) analysis.
Analysis of both companies‘ financial statements showed that Nigerians spent over N29.08 billion on hotels in Q1 2026, up by N2.33 billion or 8.71 percent when compared to the N26.75 billion customers expended in Q1 2025.
Join our WhatsApp ChannelDuring the period under review, it was gathered that Transcorp Hotels’ revenue surged by 8.59 percent to N22.41 billion, surpassing the N20.63 billion generated between January and March 2025.
Transcorp Hotels managed to curb its cost of sales, which increased by 0.99 percent between January and March of this year to N5.21 billion, compared to the N5.16 billion sustained during the same period last year.
Further analysis showed that this pushed gross profit to N17.19 billion in Q1 2026, exceeding the N15.47 billion reported in the first quarter of 2025, representing an increase of 11.12%
After factoring other operating income, impairment (losses)/gains on financial assets, impairment losses on non-current assets and operating expenses, Transcorp Hotels was left with N47.63 billion as operating profit in Q1 2026, which increased by 10.49 percent from the N6.89 billion notched up in Q1 2025.
Also, the company saw a 14.58 percent year-on-year decrease in finance costs, which dropped from N892.36 million to N762.21 million, while finance income increased by 44.57 percent, from N151.99 million to N219.74 million.
As a result, Transcorp Hotels earned N7.07 billion as profit before tax (PBT) in Q1 2026, overshadowing the N6.15 billion pretax profit recorded in Q1 2025, indicating a 14.96 percent growth.
Meanwhile, income tax gulped N1.41 billion of Transcorp Hotels’ earnings in the first quarter of 2026, up by 27.64 percent when compared to the N1.11 billion tax expense sustained in the same period the year before.
Consequently, Transcorp Hotels was left with N5.66 billion as profit after tax (PAT) in Q1 2026, which increased by 12.17 percent compared to the N5.04 billion recorded in Q1 2025.
How Ikeja Hotel Performed
During the period under review, Ikeja Hotel’s revenue rose faster than that of Transcorp Hotels, as it increased by 9.13 percent to N6.66 billion, exceeding the N6.11 billion generated as turnover in Q1 2025.
A broader look into Ikeja Hotel’s financials showed that cost of sales jumped 10.31 percent from N3 billion incurred in the first quarter of last year to N3.31 billion during the same period in 2026.
In addition, the company’s gross profit surged to N3.34 billion in Q1 2026, compared to the N3.10 billion reported in the corresponding period in 2025, representing an increase of 7.99 percent.
Following the deduction of administration, sales and marketing expenses, Ikeja Hotel recorded N2.53 billion as operating profit between January and March of this year, up by 4.14 percent compared to the N2.43 billion posted in Q1 2025.
Also, Ikeja Hotel’s finance income skyrocketed by 58.84 percent year-on-year, from N417.63 million to N663.4 million, however, the company recorded zero finance cost in Q1 2026, compared to the N367.03 million reported in Q1 2025.
It was also gathered that Ikeja Hotel’s profit before tax soared by 28.70 percent, rising faster than that of Transcorp Hotels, as the former recorded N3.2 billion pretax profit in Q1 this year, surpassing the N2.48 billion recorded in the same period last year.
Out of the pretax profit, Ikeja Hotel paid out N1.08 billion In tax expense, compared to the N830.55 million income tax incurred in Q1 2025, reflecting a 31.09 percent increase.
Following the tax payment, Ikeja Hotel recorded N2.11 billion profit after tax (PAT) in Q1 2026, up by 27.51 percent when compared to the N1.65 billion PAT reported in the corresponding period in 2025.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
